market manipulation?

Batman28 · Jan 9, 2008

I know the truth is when it comes to trading you shouldn't really care and just follow the market and make money. And I can imagine only losers cry about market manipulation, unfairness blah blah etc.

But ignoring all that, just putting it into perspective - wasn't the huge selling bit earlier a bluff? if in fact truth - why would the same forces buy it back? I'm not talking bout little guys trying to chase the market. I'm talking about those forces that are able to move markets.

clearly there is a reason for it? buying back cheaper? remember this is the day Goldman announces recession for 08.

I know how some of you smart guys like to talk about irrational market, randomness bla blah. but i don't really think this was random at all. if it was random the selling might ease pace and stop at a equilibrium level today. but it was PUSHED down only to be bought back heavily.

I don't want to hear trading strategies, making money bla bla, just think about what just happend, do you really think market wasn't manipulated?

Aaron Copland · Jan 9, 2008

I would say someone has leaked some information maybe a rate cut, or maybe AA earings are ok.

TradEStar · Jan 9, 2008

Institutions always at times run prices lower to what they consider "wholesale" pricing levels..why keep buying inventory at high retail pricing? Study market profile or auction market theory and this will all make sense to you imo. The market is a big cash cow..they run the market up and down to grab inventory from weaker hands..over and over again.

PAPA ROACH · Jan 9, 2008

Dudes, today was not all that complex as most days can be, news followers were selling, and technical traders triggered their buying off of MAJOR TECHNICAL SUPPORT. There was no manipulation, we just hit the trendline on the S&P, a major one at that. Even I, the biggest bear in the woods bot that test.

makloda · Jan 9, 2008

Quote from Batman28:
I don't want to hear trading strategies, making money bla bla, just think about what just happend, do you really think market wasn't manipulated?

Not manipulated. Statistically, after multiple heavy downdays a strong bounce comes, sooner or later. Has nothing to do with manipulation. It's merely a reversion to the mean (as the % distance from the moving averages has become 'too great', whatever that is).

Batman28 · Jan 9, 2008

Quote from PAPA ROACH:

Dudes, today was not all that complex as most days can be, news followers were selling, and technical traders triggered their buying off of MAJOR TECHNICAL SUPPORT. There was no manipulation, we just hit the trendline on the S&P, a major one at that. Even I, the biggest bear in the woods bot that test.

what major technical support? no disrespect but I've had the opportunity to visit some of prop desks at a few Invesment banks and haven't met a single trader who uses it or beleives in technical analysis. I don't have much of a view on it myself.

ElCubano · Jan 9, 2008

Quote from Batman28:

But ignoring all that, just putting it into perspective - wasn't the huge selling bit earlier a bluff? if in fact truth - why would the same forces buy it back? I'm not talking bout little guys trying to chase the market. I'm talking about those forces that are able to move markets.

prices ( probably; i say this cuz i have no idea if they did or didnt ) went too far away from value and caught everyone else in the jiggy ....

too bad i wasnt here for the late day rip; i was at the dog track taking money from the old cubans... peace

Batman28 · Jan 9, 2008

Quote from makloda:

Not manipulated. Statistically, after multiple heavy downdays a strong bounce comes, sooner or later. Has nothing to do with manipulation. It's merely a reversion to the mean (as the % distance from the moving averages has become 'too great', whatever that is).

a mean reversion in 30 min? you gotta be kidding me. were you watching the market live? and plus it looks like it ended up a little over the mean anyhow.

now assume those 'technical traders' out there. how many people use TA, you really think the TA gang stepped in and that trillion dollar move came from TA trading activity? do you know what it takes to move NDX 50 points up in 30 min?

detective · Jan 9, 2008

Markets are manipulated by the big boys who run the buy programs. That was pure buy program in the last 90 minutes. And everyone else just went on for the ride.

This was your one day wonder. The market won't be going much higher from these levels barring the most anticipated surprise rate cut in history.

PAPA ROACH · Jan 9, 2008

Quote from Batman28:

what major technical support? no disrespect but I've had the opportunity to visit some of prop desks at a few Invesment banks and haven't met a single trader who uses it or beleives in technical analysis. I don't have much of a view on it myself.

No disrespect taken. There are many different trading styles, but I can tell you that technicals have a major influence on the market. I was a floor trader at the NYMEX, and even the scalpers looked at charts for major areas of support and resistance. That being said, I am not a strong believer in many of the indicator packages.

The Late Feb/Early March low on the S&P was 1363, so tell me why the August low set at 1370 with a massive late day rally? Draw a line from the March low to the August low and you get 1376ish, thus that was why there were many traders including me waiting in the shadows to pile in today.