Market Maker Collusion

[harrytrader]

In France it's the best: they are the king there is practically no association at all except one directed by a grandma of more than 70 years old and only for investors . In fact they even propagate scandals to change the law. For example to give you an idea: our french equivalent of SEC is the COB. Well they say that COB Was not efficient enough and they made a scandal on medias saying that something must be changed. Guess what change they did ? The equivalent of Market Makers Organisation absorbed our equivalent of SEC: imagine that SEC was absorbed by Market Makers Dealers well This was done although ridiculous !

Quote from bungrider:

it's ironic that nasdaq gets the blame when NYSE specialists blatantly do this with no fear of reprisal...presumably under the guise of an "auction market"

sweeping the book is proof of this bullshit

and so is not showing the real bid/offer

 

[Trajan]

Quote from Tea:


The real collusion is in pit trading. If someone cuts in front and narrows the spread - everyone can see who is doing it and they stop trading with that person. No order flow. It goes on to this day.

Yep, It's why I would never step back on a floor again. I can't trade like that. Just raising your hand works for many people but they will struggle when options go electronic.

 

[MACD_addy]

Hey Kean,

I know what you are talking about I have seen it before. I don't usually trade such low volume stocks but I have seen the flashing before and always laughed it off saying it probably was some kind of signaling. Unfortunately, I was just too impatient or too lazy to watch these potential signals and try to ascertain a pattern that I could capitalize on.

Good luck with your theory, I hope you 'blow the lid right off' a collusion plot.

 

[nkhoi]

I see the far away bid/ask all the time but did not connect the dot, thank for idea.

 

[bungrider]

do you guys realize that any one of us could be doing this JUST to f^ck with you guys??

..or that this flashing leading the stock one way or the other is most likely not a signal at all; just some a$$hole playing a game with you??

..or that it could be a misfiring of a program that some schmuck wrote to peg orders?? (or that the schmuck could be testing the program's functionality by placing orders way outside of the current market, as not to get hit)?

just some alternative theories to keep us all on the same planet


"...yeah that flashing is the iraqis sending messages to terrorist sleeper cells working as traders...it's the same group of guys who brought down enron.."

geez.

 

[ryanmitcho]

now that you just publicly told everyone, including the market makers, that you noticed this, good luck making money with your newfound strategy!!!

the way I see it, if you can find an edge, keep it to yourself until you make enough money off of it.

 

[goldenarm]

This also happens in listed stocks in NYSE Open Book and when Specialists fade big bids or offers. These tactics are how Specialists and other daytraders create the appearance of buying/selling pressure and/or support and resistance points. This stuff has been around for a long time and it's all part of the game. You have to learn to filter out the noise. Same thing goes for NASDAQ stocks.

 

[Judge Smales]

Quote from kean:

I play a few tier two/three stocks consistently. The volume is between 200-400 thousand. I've noticed funny bids and offers appear and leave 5-15 levels away from price level 1 and sure enough within a short time the price approaches these levels. I now believe these are market maker signals to those in the know that they have a buy or sell order in hand and believe they have enough stock to move the price to a certain level. I believe this since I profited from this flashing 5-6 times since I became aware it was likely. It usually happens between 10-3. Which ever way the stocks immediately break after this I long/short it and don't cover until it approaches the levels I've seen the flashses at.The stocks usually move 50-cents to a dollar. It sounds crazy but I'm pretty certain this is happening. They're screwing the entity who gave them the order or fleecing the daytrader.

You are imagining things.

Maybe what you are seeing is a market maker who is working an order. He needs to commit capital to a customer, and given the thin nature of the stocks in question, he crushes bids or lifts offers for .50 so he doesnt get killed on the order. He works stock behind his commitment.........

If you dont like the way the thin stocks trade, move into something thicker, where the intentions of the marketmaker are less apparant. On the other hand, if the flashes are so apparant, just trade with them. Sounds like a printing press.

My feeling is, the only consipracy is that eveyone is trying to take money from everyone else.

 

[Wasted_Daytrade]

Quote from bungrider:

it's ironic that nasdaq gets the blame when NYSE specialists blatantly do this with no fear of reprisal...presumably under the guise of an "auction market"

sweeping the book is proof of this bullshit

and so is not showing the real bid/offer

Yes you are correct sir...and more so during earnings season

I used to trade Nasdick and then was convinced to trade the shisted NYSE stocks

wow I never seen books so blatantly unupdated, you can not take a calculated risk without being torn a new bunghole

 

[stock777]

I know for a freakin fact that there are signals , and what they are, and where they are.

How to trade them is another matter. Not so easy or obvious.

And I will not reveal this to anyone but my psychatrist.

Just kidding. I really do know, and no I won't tell for the very reason that it would ruin the fun.

Kean, don't let anyone tell you you're seeing things, just trade it and hopefully make some money. EVERY FIX AND SCAM in history was accompanied by those that said it was not true. Think about it.