Futures Losing Predictive Power: Tim Quast Warns of HFT Distortion

Tim Quast, CEO of Market Structure Edge, explains why futures are no longer reliable predictors of market direction. He points to the rise of high-frequency trading firms like Susquehanna, Citadel, and Jane Street, which have investment horizons measured in milliseconds. These firms, holding trillions in derivatives, distort price signals. He also warns of increased volatility around monthly options expirations and index rebalances, noting that these periods can make predictable trading difficult.

======== Schwab Network ========

Empowering every investor and trader, every market day.

Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document. http://bit.ly/2v9tH6D

Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe

Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185

Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7

Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch

Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore

Watch on DistroTV - https://www.distro.tv/live/schwab-network/

About Schwab Network - https://schwabnetwork.com/about

Fler avsnitt av Schwab Network