An open letter to HF managers and employees

J

John_Wensink

I feel compelled to write this letter, sadly I wish my audience were bigger.

Dear Mr. Ms. Hedge Fund Manager,

While I appreciate the liquidity and volume you bring to the commodities market, I would like to ask you to close your positions and you have a greater grasp of the markets you trade and the underlying fundamentals that drive the markets.

I have no doubt the quants you hire are very bright, however, they do not have even the most basic understanding of commodities or futures. This can be easily demonstrated by the fact that supply and demand have you bearing on the markets any longer. Because the Dow Jones is up 50 pts. does not mean the supply of oil, heating oil, nat gas or tea in china will be diminished in any meaningful way. As a second point, when the market drops in all likelihood you fund will blow up.

I only speak for myself and I'm sure my sentiment is shared by many commodity traders who were on the floor trading while you were on the floor while your mommy was wiping your ass.

In closing, please read Peter Lynch's and invest in what you know, take your 3%, your shelf life will be much longer.

Thank you and the DNC does not approve or disapprove of this message.
 
You have to many people who know too little in control of too much money.

No matter what you are long or short, you are long or short stock, that's it end of story.

Long GBP, long stock, Long oil, long stock. short EUR, short stock.

The hedge funds have screwed this market up so badly it's depressing.

Watch what happens during hard sell offs, most hedge funds just puke everything.

They should stick to their long short 3% returns and leave everyone else alone. Just because their life sucks, stay out of mine.
 
There are a lot of people to blame, but mainly it is the culture that has allowed the computer scientists to thrive.
It's one in a series of examples of how America has departed from capitalism.
Here is my theory. Technology is the religion among the business community of America. New technology is good and not to be questioned. All hail advances in technology and do not dare to question them.
Outwit dinosaurs who remember how efficient and liquid markets used to work. Outlaw the luddites.

What gets me about America is this. Whatever shit they shovel up on a spoon the Americans will eat. I don't think for a second that Americans are any smarter or more stupid than other nationalities but it seems that most people may as well be in a coma. (& they probably are tranquilized)
No one can think for themselves anymore. That is why the oxygen thieves on cnbc are in business. For the people who take business advice from the muppet Denis Kneale I would ask you please to find a bridge to jump off of.

The stock market has always been a gamble but now you will get better odds in a casino
Why are we so short sighted that we allow these people , who should be fixing our computers, to fuck up our markets?
But it's not about the nerds, there must be more to this.
Maybe for some it's shape shifting lizards and the Bilderburgers. Whatever the conspiracy theory, here is the fact. This whole game is about redistribution of wealth. What amazes me is how greedy the elite have become.They've decided the middle class as a bad idea. They want everything back and to consign the rest of the population to trailer parks.
Suppose it works. You know a few people who own the HFT companies will take the lion share. Then they will build a new hooverville for all the computer programmers they no longer have any use for because they are fucking puppets. Enjoy your moment in the sun. Tomorrow you will be history, and worse than that you won't even have the common sense and practical skills that real people have.


What was the question???
 
Amazing change of attitudes on these boards since I started here.

Unfortunately, it took the collapse of true capitalism, and the markets that once supported such, to bring the crowd.

Oh, the stories I will someday tell:eek:
 
What's with the whining? As if this market was anything abnormal. While I think there should be some (30second) minimum to keep an instrument, I also understand the market always gets faster and the same amount of fluctuation appears in shorter timeframes. This is just the next logical step. I'm sure there were many traders in the 1970s and 80s who said computer capabilities should not be used, for the same exact reasons. See the problem?
The ?good? thing is, we have achieved the minimum latency, what's next?
 
d08 - I don't get your post. I think that we would disagree on the most basic level and that is what efficient and 'normal' markets are.
I suspect that you have't been involved in the markets for more than a few years but feel free to put me right about that.
You know that if the HFTs had to be good on their trades/quotes for 30 seconds they would be out of business??? I don't get that part of your argument.
If they were good on their trades/orders for one whole second the human eye could read what they are up to and outwit them. What are we up against is computer programmers who have expertise in backtesting and statistical profiling but no clue about market psychology. Any real trader would fancy their chances against a computer programmer, and the nerds know this and that is why they have to disguise the price action.

The markets get faster, and so they do. But at some point you have to question if more speed is better. If we didn't allow HFTs to enter thousands of order every second then there would not be flash crashes. There would be crashes without a doubt, but in the minutes that it took a market to sell off percentage points the human traders brains would kick in to action and support the market if there was a reason to.
Speed is good but only to a point.
Technology takes us forward but not all technology is good.
Characterising people who have an open mind to question new technology as whiners says more about your mind set.
You are casting aspersions on people that ask valid questions on the current state of the market and in so doing highlighting your technological bigotry.
Think again.
 
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