Obviously US equity exchanges have not terminated their relationships with high frequency traders as we continue to see the evidence of "flash crashes" where in an instant (or less) specific stocks are taken to the woodshed and destroyed, only to have much of their value returned a moment or two later.
The problem of course is that if you were unlucky enough to enter in a market order to sell at that instant, you would be crushed and lose significantly. Additionally, if you were smart enough to have a stop in place, you got crushed unless you entered in a stop-limit order (although it probably gets executed as the stock recovers). Ultimately, the loser here is the smaller consumer-type retail investor and we continue to see nothing done to lessen the power and control these automated systems have in our stock marketplace. It is even more of a joke to hear that these connected and wealthy firms have a physical presence in exchanges where they get an advantage in terms of communication time and speed.
WATCH OUT BELOW
Here is a great example of how wonderfully these can impact a simple dull little stock like a utility! Check out AEP on a 2 minute chart and also a Daily Chart.
2 MIN - AMERICAN ELECTRIC POWER
Wouldn't it feel nice to leave your computer for a second and return having sold your position $10 less than where it is trading?
DAILY CHART - AEP
Technology helps provide liquidity doesn't it? If that is the benefit from all this technology, I'll pass.