Email of the day
Comment of the Day

December 31 2012

Commentary by Eoin Treacy

Email of the day

on evidence of high frequency trading:
“I seem to remember that you suggested the chart pattern that was compatible with high frequency trading was a series of sudden sell-offs. If so the chart of Just Energy Income Fund on the Toronto Exchange would seem to exemplify it. Is this so? Am I understanding it properly?“

Eoin Treacy's view Thank you for this question which others may have an interest in. High frequency trading has been responsible for a number of high profile declines in various exchange traded vehicles over the last few years. However, their activities are most readily observed on intraday charts where the size and frequency of short lived volatile episodes has increased. Just Energy has exhibited a high degree of volatility over the last few years but this 30-day intraday chart does not suggest a great deal of HFT activity.

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