SpyGate ended the day Monday with 140 program trades detected, the highest count of the week. The buy-side slightly outnumbered the sell-side. A deficit of $1B for the sell-side was the net outcome of all the trades with about $3B in trades detected.
A buy program was the first program trade of the day not coming in until 10:33 ET. The morning continued very slowly with just more buy programs before noon. The markets awakened right around 14:00 with the release of the Fed beige book. That 14:00 release fired off a trio of sell programs with size and changed the momentum of the market from sideways to down.
Price Action During Program Trades
During the Final-2 sell programs outweighed buy programs. With the Market On Close Imbalance release at 15:50, six buy programs fired which stopped any downside momo and let the markets close higher into the end of the day.
SpyGate detects several different types of programs trades. An STT program is a simultaneous triggered trade. The detector looks for a basket of symbols trading at the same time. The price action around these detected trades helps us deduce if the program was a buy or a sell. Our detector reports the number of symbols in the trade, the number of individual trades executed, and the dollar amount of those trades.
What is SpyGate?
SpyGate is a proprietary tape reader that analyzes price action on all the exchanges and sniffs out unusual trades. The detector follows price action and accumulates adaptive knowledge using Machine Learning (ML) and Artificial Intelligence (AI) to recognize algorithms and program trades as they execute. The first implementation detects STT Programs ( Simulatanousely Triggered Trades). These basket trades execute thousands of transactions in miliseconds. The transactions are in millions of dollars. This product is under heavy development and is currently available free for our traders in our TradeChat trading room along with the MiM and live breaking news. You can join us by purchasing a subscription to the MiM.