SpyGate ended the day detecting 113 program trades detected which is two less than Wednesday.
Only six trades executed in the morning session and all of them were sell programs. This pattern has repeated this week. There is no interest in program trading land in buying at these levels until price action returns with volume.
Price Action During Program Trades
The first detected program trade past the open executed at 9:54:44 ET, selling 469 symbols in 19K different trades for a sizeable $254M. That bot trade led the market to the morning low which rose most of the day into sell programs that had small effects on the tape. On days like these, it is good to remember the adage never ‘short a dull market’. This market is drifting higher and higher on lighter volume.
SpyGate detects several different types of programs trades. The STT progam is a simultaneous triggered. The detector looks for a basket of symbols trading at the same time. As these trades are detected, the price action around the trade 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.