Компютърът Watson на IBM вече работи на Уолстрийт

Предполагам, че пътвият съвет който ще даде е да изритат Обама от Белия дом.

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има нещо има проблем
ниама нещо ниама проблем

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Някой пак се готви лесно да бърка в кацата с меда!

THE CHEAT MACHINE

by Joe Ross
Author, Trader, Trading Mentor
Trading Educators, Inc.

(HFT ------> High Frequency Trading)

In this week’s Chart Scan newsletter, edition 321, I published an article about how the Plunge Protection Team is used by the government to manipulate the markets. What I wrote in that article is still valid.

In this article, I reveal something that every investor and trader must know.

It is an expose’ of the Goldman-Sachs (GS) cheat machine. The article is about something very real, and indicative of the times in which we live.

THe most evil, cruel machine of mass destruction ever created has been turned on. Let’s call it The Cheat Machine (TCM).

I first noticed it when, in 2005, I came across information revealing that GS had made more money trading than it had made in commissions. Since that time, TCM has been refined to the point that GS has not had a losing month in quite a long time.

Anyone who is an experienced trader or investor knows that there is something fishy about not having losing months, but that is the reality for GS today. They continue to make far more every month than they ever hoped to make in commissions. But it’s even more profound than... ... not having a losing month. GS has not had a losing trading day in several years.

TCM is a computer. The fastest, most powerful ever made. GS owns and runs it, and it is robbing you of your wealth around the clock.

TCM is kept so secret that only a handful of people have seen it. I base what I know of it on talks I’ve had with people who know some of the components of this system from hell.

No one, including those who programmed it, fully understands everything TCM does. I do know it is connected, directly or indirectly, to every market information data base known to man. It is so fast it runs circles around every other computer in the world. It has the power to manipulate (for a time) every market in the world.

Right now it is most dangerous for you, me and every trader and investor, because it is tied directly to the New York Stock Exchange computers. In fact, it is connected to every exchange computer in the world, be it stocks, futures, currencies, or bonds. It lets GS see every stock order and futures order that is placed on any exchange – BEFORE the exchange executes it – and it allows the GS computer to jump in front of the market. This is called FRONT RUNNING.

Every time you, your mutual fund, or your retirement plan buys a stock, bond, or commodity, you pay more than you should have. Goldman gets there first thanks to the immense power of TCM. They bid up the price you paid. They gouge you.

I wonder how many of my readers realize that when they are trading over the Internet, the speed at which they execute is far below the speed at which GS is trading. It is like riding in a covered wagon during the Indianapolis 500.

To give a somewhat imprecise example, when you place an order on your electronic platform via the Internet, you may be trading in thousandths of a second. It seems so fast. However, those traders who are located at the exchange and are trading on direct access terminals are trading in millionths of a second. You are a thousand, thousand times slower than they are. Let’s say the exchange computer, in order to be able to handle the data load, is trading in billionths of a second, where does that leave the GS computer? The GS computer is trading in trillionths of a second.
In many cases, TCM can freeze you out. Even worse, it can push you out of your positions as a big loser. Many small investors learned this the hard way, in the May 6th “flash crash” bloodbath.

TCM enables GS to commit legalized theft on a mass scale. It is the reason GS made nearly $30 billion these past few years — while the US economy thrashed around in the worst depression since the 1930s.

TCM is located in a steel, nuclear-proof vault, ten stories below street level, in the same room as the NYSE’s own computers. It’s wired directly into them, in fact. Most of the time, it’s like giving GS a license to print money.

But on Thursday, May 6, the scheme backfired. GS’s super-computer turned the regional Greek downturn into a global meltdown. The Dow plunged 1000 points in two hours. It forced an emergency bailout by the US and members of the European Union. They had to cough up $1 trillion for Greece. Something they all said they would never do.

Thursday, May 6, an event took place that struck fear and terror in the hearts of anyone who understood what they saw: US stocks had their biggest one-day meltdown in history. Stock prices fell 1000 points in two hours. Never had stocks fallen so far, so fast. Not in the 1987 wipeout. Not even during the crash of 2008, which was the worst plunge since the Great Depression.

One Dow component, Procter & Gamble, fell from $40 a share to 38 cents — in less than 30 minutes. It was unprecedented. But it will not be the last of these kinds of meltdowns. This is the first of many crises we are soon likely to see.

As usual, the sold-out Wall Street press went into overdrive. They quickly belittled the stark warning of what’s to come.

On Flash Crash Thursday, every major exchange took catastrophic hits. Instantly, the media blamed it on a rookie trader’s typing mistake.

Don’t you believe it! This was NOT a human error. It was not an accident. It surely wasn’t a one-time event either.

You saw Wall Street’s mindless computer trading programs backfire — and turn a regional downswing into a full-blown global panic.

You saw Wall Street’s biggest “screw-you” scam ever blow up in its face.

You saw The TCM rear its ugly head, turn on its makers, and nearly cause a total meltdown in US stocks. What you saw was how a Greek riot could turn into a global stock crash.

The Greek riots were broadcast around the world. Investors were scared stiff. This is not what Wall Street told them would happen. Huge amounts of sell orders hit the exchanges, all at once.

GS’s brilliant computer models saw those sell orders. Its black box computers did their job, without human knowledge or intervention. In pico seconds they jumped in ahead of the market, and put in more sell orders. Goldman was making a killing.

But two problems came up. First, sell orders kept coming in from all around the world. They greatly outweighed the buys.

The NYSE’s slow-moving computer saw this huge imbalance of sell orders. It delayed the processing of all trades. By 90 seconds. That is, every order was held up for 90 seconds.

This was supposed to give the market makers time to check for errors. In reality, it gives them time to cover their rear ends. But the delay only made things worse…

The TCM and the other HFT computers could not make trades on the NYSE. Remember, they make decisions every pico second. For them, a minute and a half is an eternity.

But even more selling pressure was building up. The sell orders kept pouring in. Goldman’s computer knew about these orders before the NYSE did: it is connected to the exchange computers, but far faster than they are.

So the computer did what it is programmed to do. It started selling on other stock exchanges. It sold on the futures markets as well. These markets did not delay sales. They were deluged with sell orders. Prices fell even faster than on the NYSE, creating a huge backlog of sell orders that accelerated by the microsecond.

You literally saw stock market traders stampede for the burning exchange doors. The whole thing quickly got out of control because there were no buyers!

And the computer systems from hell did more of the unthinkable. Seeing prices falling, they kept selling more, bidding the market down. Down, down, down it went. Where it would stop, nobody knew.

Computers led the market meltdown, a meltdown like nothing seen before. It may be only the first. Next time the system collapses it could be too big to stop. Even temporary, partial reversals will not last.

Please understand. Wall Street has bet all your money — our entire financial system — on their computer models, on the bizarre belief that they can correctly predict the future, day in and day out, without error. Do you see how crazy this is?

Stop-loss orders

Stop-loss orders screwed the little guy even more. On Flash-Crash Thursday, things kept getting worse. Many people trade with stop-loss orders. Stops are supposed to limit losses. But in the new world of TCM, they only make your losses bigger.

Stop-loss orders do not hold your broker to a set price in a fast market. All he has to do is get the “best possible” price.

In the market chaos, the usual Wall Street victims could not get out at their stop-loss prices. The stocks crashed right through the stops. That meant the little guy got screwed even more than usual.

Many people were forced out at the lows. Yet the market closed WELL above the original stop price. This is why trading with stops in the market can be a suckers’ game. When you need them the most, they can screw you to the wall. Still, it can be extremely dangerous to trade without them. Sometimes it’s better to have them, and sometimes it’s not.

One stock was selling for $42 a share early Thursday. It plunged straight down to $.04. That’s what the average guy with stops got —four cents a share. He lost 99% of his money.

Later that same day, this stock bounced back. It closed over $41. Who do you think bought these shares in the few seconds they were at the ridiculously cheap price of a few pennies a share, and then watched it shoot back up to over $41? It was none other than GS’s HFT computer trader, The TCM.

In essence, GS stole these people’s stock. No humans involved in any way.

Not surprisingly, the regulators are still scratching their heads, looking for someone to blame. Of course, they are careful not to offend their future bosses — the people they will work for when they leave government service. Do you know that most key financial/economic positions in government are held by “former” GS partners?

By day’s end of the Flash Crash, the market manipulators were able to regroup. They brought the market back up some. The Dow still lost nearly 350 points on Thursday.

On Thursday May 6, the markets caught a glimpse of the future. They felt the cold chill of what probably lies ahead. Sooner than anyone thought possible, investors started throwing in the towel.

Before Flash Crash Thursday, the market had dropped 100-to-200 points every day that week. Thursday started as more of the same. Then GS’s high-frequency trading system from hell — The TCM — kicked in.

High-frequency trading is just a polite term for front-running. It lets Wall Street insiders trade before their customers do. Almost no one understands this. Anyone who did would never set foot in the Wall Street casino again, except in very smart, sophisticated ways.

Here’s how it works.

As I already mentioned, Wall Street computers are directly connected to the exchanges’ computers. So firms like Goldman see all orders that come in to the NYSE and NASDAQ — all the exchanges — before they get executed. They see all buy orders, and all sell orders. That lets them place their own orders, for the same stocks (or options or futures) ahead of their customers. They get there pico seconds before everyone else, which makes all the difference.

Say Goldman’s computer sees an order come in to the exchange, to sell a large block of IBM shares. Goldman rushes in a few pico seconds ahead of time. Again, it can do this because it is connected to the exchange computers and because its computer is MUCH faster than anyone else’s.

Goldman sells that same stock first. Its selling takes the market lower. So the original seller gets a lower price. Goldman pockets the difference.
Same thing when Goldman sees buy orders come in. It buys ahead. That forces the market higher. Buyers must pay a higher price.

Each day, Goldman front-runs billions of shares. That is how they made nearly $30 billion in profits the past few years — even though the US economy is in a deep recession, and normal investment banking activities (IPOs, mergers & acquisitions) have fallen steeply.

It’s like playing poker when you know the cards of all your opponents, but they don’t know yours. Goldman knows the cards of every retirement fund, mutual fund, institution, and individual who trades stocks.

Remember, everyone else is not connected to the exchange computers with their own personal multi-billion dollar super computer. Their trading systems work more slowly. That puts them at a fatal disadvantage.

Goldman learns the trades they are going to make. It jumps ahead of them, and “scalps” them. That is Wall Street’s own term.

And this computerized front-running, this “scalping,” led to the chaos on Flash Crash Thursday.

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До коментар [#1] от "lordcris":

Тъпак.
Днес пак съобщиха за нови 200 000 работни места, създадени от частния сектор в САЩ. Обама е виновен

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До коментар [#5] от "Svetko":

Даже е яко по-евтино. Ти разби целия им бизнес кейс с това

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........."първият клиент на Watson в областта на финансовите услуги е третият по големина кредитор в САЩ, Citigroup."
-----------------------
Тези на фалираха ли отдавна, и тъкмо Уотсън да е причината?

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Някои спекулират, че именно роботизираните играчи на борсата надуха имотния балон, чиято попара все още сърбаме тук в Европа.

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До коментар [#4] от "Rael":
Не знаех, че Обама е частен предприемач. Идиот!

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До коментар [#6] от "theWho":


[quote#6:"theWho"]Да подарят един на Бойко. [/quote]


За какво му е?

По-добре да му подарят футболна топка.

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И IMB в статията е?

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И някой пич да беше написал, че http://en.wikipedia.org/wiki/Watson_(computer)

Software
Watson's software was written in various languages, including at least Java, C++, and Prolog and uses Apache Hadoop framework for distributed computing, Apache UIMA (Unstructured Information Management Architecture) framework, IBM’s DeepQA software and SUSE Linux Enterprise Server 11 operating system.[8][17][18] “[...] more than 100 different techniques are used to analyze natural language, identify sources, find and generate hypotheses, find and score evidence, and merge and rank hypotheses.” [19]

ЛИНУКС, ЛИНУКС, не боза майкрософт боза 7, 8....

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