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• A Computer-Driven Stock Market - Forbes.com

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  • much of the volume that's supported the current rally is coming from algorithmic trading programs that are "high-frequency computer-driven trades made by people attempting to capture spread."
  • Mahoney believes that up to 70.0% of the market's current volume is represented by such algorithmic or opportunistic traders.
  • That means that the market isn't necessarily doing what we tend to think it does -- weighing the prospects of an economic recovery six to nine months down the line.
  • "Real [long-term] investors haven't made their decisions yet," Mahoney says. "They're waiting to see change."
  • If Mahoney is right and we're in the midst of an algorithm-driven rally, it could well dissipate with little warning.

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