Gotta love ZERO RISK in the SP500 = $$$

How does buying an index composite, or a derivate of the index, affect the individual stocks of the company that make up the index?

I thought it was the other way around.
 
Overnight said:
How does buying an index composite, or a derivate of the index, affect the individual stocks of the company that make up the index?

I thought it was the other way around.
More...

Buy certain Indexes and Baskets, that goes towards companies within them, then HFT front run, adding " illusion " of gains, as long as their is someone giving money away, HFT do their thing... When they stop, you suddenly see crazy reversals that make no sense cause artificial pumping only works on a one way street... The Fed is prisoner to it's own game, biggest money maker on Wall St is front running the PPT

https://nypost.com/2018/02/05/dc-plunge-team-may-have-halted-unprecedented-dow-jones-spiral/

I benefited greatly from it, but I think I might of fucked up trying to short before a recession... Only a china credit crisis will bring it down, any other sell-off is met by dozens of billions daily in Fed money, HFT reverse everything. In bull markets when everyone is buying it's cool, in bear markets they are watching 24/7 ready... They create Trillions for free
 
Stockolio said:
In recent weeks, we’ve discovered that the CME Group, the exchange in Chicago, has an incentive program under which foreign central banks could buy stock market derivatives like the S&P contracts at a discount. It’s not that these foreign banks need a break on the price of their trading. But it does show that there is a back-door way — through foreign emissaries — for the Fed and the US government to prop up stocks like Heller suggested, and — maybe — not get caught
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The Central Bank Incentive Program at the CME has been available for several years. This is not a recent discovery. Additionally, there are International Incentive Programs at the CME, available to emerging market banks, and fund managers within specific counties.

A quick google search reveals at least one fee schedule from past years which includes CBIP and IIP member fees. Here's one from 2017...

https://www.cmegroup.com/company/files/cme-fee-schedule-2017-07-17.pdf
 
tiddlywinks said:
The Central Bank Incentive Program at the CME has been available for several years. This is not a recent discovery. Additionally, there are International Incentive Programs at the CME, available to emerging market banks, and fund managers within specific counties.

A quick google search reveals at least one fee schedule from past years which includes CBIP and IIP member fees. Here's one from 2017...

https://www.cmegroup.com/company/files/cme-fee-schedule-2017-07-17.pdf
More...

I copy pasted article from 2014... https://nypost.com/2014/10/20/plunge-protection-behind-markets-sudden-recovery/
 
Stockolio said:
Throwback Thursday! Goldman claims buybacks caused 3 % reversal intraday in both days... Haha my ass, companies don't buy back futures by the ton in trading hours

https://nypost.com/2014/10/20/plunge-protection-behind-markets-sudden-recovery/

Here’s the bottom line: Someone tried to rescue the market last Wednesday. And it’s becoming a regular occurrence.

The details of last Wednesday morning are these: At the same time the Dow was off 350 points, the S&P index was down 43.80 points, That was an enormous decline in just 11 minutes of trading and it was an indication that Wall Street was not having a good day.

Then, someone (or something) started buying S&P futures contracts en masse. Twenty-one minutes later, the S&P index had regained 30 of those lost points and was back at 1,861.

Maybe you’ll believe that there was some manipulation going on if you knew that a guy named Robert Heller, who was a member of the Federal Reserve’s Board of Governors until 1989, proposed just such a rigging as soon as he left the Fed.

Look it up. Oct. 27, 1989, Wall Street Journal. Headline: “Have Fed Support Stock Market, Too.” By Robert Heller, who had just left the Fed to head up the credit card company Visa.

“It would be inappropriate for the government or the central bank to buy or sell IBM or General Motors shares,” Heller wrote. “Instead, the Fed could buy the broad market composites in the futures market.”

In case you don’t know the lingo, Heller is proposing that the Fed or government purchase stock futures contracts that track — and can influence — the major indices.

These contracts are cheap and a government could turn the whole stock market around quickly — but probably not permanently.

Wow! Doesn’t that seem a lot like what happened Wednesday at 9:41 a.m., when S&P futures contracts were suddenly and mysteriously scooped up?
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Companies are making huge purchases on their own stock using proceeds from record profits and, yes, that does move indexes. Not sure why you are perpetually confused about this. Also, when large inflows into mutual funds and etfs choose equity those purchases have to be bought. Discretionary fund managers do time those purchases, and intraday dips especially on the open are such opportunities.

Your whole shtick is ignorant and ridiculous. It's embarrassing seeing these theories on a trading site.
 
And Trump delays tariffs to get this rally going! Amazing! Have to admit it's amazing how perfectly they can time to get us moving. Buy the dips!
 
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