I tell you something, i met a trader at a prop desk of a bank once who told me about the big 'shops' of the jungle who try be the biggest shop of the jungle like renaissance technologies. so they can move prices. I don't know shit myself but seriously you're fooling yourself if you think that was some normal trading period.
market manipulation?
- Thread starter Batman28
- Start date
applying technical analysis to market manipulation makes perfect sense - as there is a reason for it. you may assume it's your chart. but did you know the market went down in 20 min and back in the same about of time? it was PUSHED down - if the market gradually falls and TA traders enter and it gradually rises I would accept your argument. but it was PUSHED DOWN and it rose RAPIDLY to days highs. it doesn't add up.
If you couldn't make money today long or short, stop trading.
of course it was a buy program, I turned on my computer to see the dow off over 80 points, I come back in 45 mins later to see it unchanged and the last half hour of trading I see it surge up 150 points, now what made it all of the sudden wake up and move up 150 points. Nothing has changed in the last 24 hours to see this kind of movement, only thing I can say is the market was oversold and looking for a bounce, I think 12850+ is possible by Friday. Financials led most of this afternoon rally, semis again were lagging....
A "bluff" by whom? The Wizard of Oz pulling his levers?
I always get a kick out of this market "manipulation" crap.
The market started to sell off for the SIMPLE reason that traders throught it would follow the same pattern that it has in recent days. A sell off into the close.
When that failed to happen, and it started to rally back, shorts covered in mass (look at the individual financial equities) and took the market up.
Now what, pray tell, is so difficult to understand about that scenario? It is classic short covering.
Most of ET has no clue when it comes to even the simplest of technicals . . .
Moreover, as someone that used to provide a very aggressive Equity Derivatives Desk of a major I-Bank a technical "note" each and every morning to the #2 equity derivatives trader, I can tell you that more often than not, guys on the sell side pitch "stories" to the buy side in order to create order flow for the desk. Order flow = commissions. Period.
Thats' what sales/traders do. They create order flow. The actual traders on the desk simply facilitate trade and are more concerned with the gamma/delta of their portfolios. Thus, I am not surprised by your comments.
As for today's SPX low, this is how I was able to come up with it . . .
1523.55 ( December High ) - 1435.60 ( December Low ) = 87.95
87.95 x 1.382 ( fibonacci ) = 121.54
Subtract 121.54 from the 1498.85 December 26th High and you get:
1377.31
Quote from Landis82:
Most of ET has no clue when it comes to even the simplest of technicals . . .
Moreover, as someone that used to provide a very aggressive Equity Derivatives Desk of a major I-Bank a technical "note" each and every morning to the #2 equity derivatives trader, I can tell you that more often than not, guys on the sell side pitch "stories" to the buy side in order to create order flow for the desk. Order flow = commissions. Period.
Thats' what sales/traders do. They create order flow. The actual traders on the desk simply facilitate trade and are more concerned with the gamma/delta of their portfolios. Thus, I am not surprised by your comments.
As for today's SPX low, this is how I was able to come up with it . . .
1523.55 ( December High ) - 1435.60 ( December Low ) = 87.95
87.95 x 1.382 ( fibonacci ) = 121.54
Subtract 121.54 from the 1498.85 December 26th High and you get:
1377.31
I wasn't talking about flow desks, but great sales desks know fundementals well, I've never heard one speak of fibonacci LOL.. i don't know maybe it works u know it better but I've never heard it a single time in the finance industry. and of all the arbitrage/stats/finance books I've seen on at prop desks I've only seen one TA book that the trader called it a joke. I don't know much myself, just trying to understand things.
Every time we have a volatile day there are at least 5-10 threads on how the market was manipulated, conspiracy theories, PPT, it was Bush's fault, Goldman Sachs did it, etc. Shorting within the last 10 minutes of every day can only work so many times.