Shadowtraders

An “Air Pocket” stock is by definition, any security that experiences a sudden drop in share price, much as an airplane experiences turbulence causing it to drop unexpectedly. Generally, air pockets come as a result of negative corporate fundamentals, such as a quarterly earnings misses, FDA announcements, or SEC investigations. But now, high frequency trading robots are creating air pockets for so many of the Market’s equities, turning investing into a “Buyer Beware Market.” (more…)