Market Manipulation

[J_Commisso]

Originally posted by stock777



Like many things, the notion of market manipulation is a touchy one. If I explained it to you, you'd probably never want to trade again.

Better to imagine an unmanipulated , random, free market system.

You sleep better.

Oh please enlighten me

 

[Traden4Alpha]

Originally posted by stock777



Like many things, the notion of market manipulation is a touchy one. If I explained it to you, you'd probably never want to trade again.

Better to imagine an unmanipulated , random, free market system.

You sleep better.

I'd love to hear this one too! Hmmm... what if Stephen King ran the SEC?

Besides, the thought that the markets are random has really scared the willies out of me! It better not be random!

Looks like I'm not going to sleep tonight, so you might as well scare us even further.

 

[theShadow]

this takes away from the random theory, thus makes trading more predictable.

 

[stock777]

Originally posted by theShadow
this takes away from the random theory, thus makes trading more predictable.

To borrow a phrase from our last decent president, Richard M Nixon, 'let me say this about that.'

The manupluators could give a hoot if a few guys accidently catch on the the game. It'll change after a while anyhow and those same folks will give the money back in spades.

As long as the p&l says green at the eod, that's all they care about.

 

[Bong Recreation]

Originally posted by stock777



Like many things, the notion of market manipulation is a touchy one. If I explained it to you, you'd probably never want to trade again.

Better to imagine an unmanipulated , random, free market system.

You sleep better.

I would be interested in hearing your market manipulation theory. I'm sure I'll sleep fine if you care to share.

 

[Minime]

Market manipulation theory

What if you took $200 million, and waited till around 12:30p.m. each day for the volume to dry up in the S&P emini. Knowing that around $200 million worth of trades per hour are placed on a normal day during this time, or $3.3 million per minute, you start buying consistently, waiting for the natural market forces to help you lift the market. As it lifts it triggers the occasional buy program in stocks, and causes sales in the futures. You absorb these sales and push it higher, causing a little more help from the other participants. You then start getting short positions to close that help you drive the market up farther, causing a mini rally. As it rallies you sell and sell and eventually kill the rally, unloading the last of your inventory with an average price a few points above where you began, but pocketing a few points times say 15,000 emini’s or a profit of $2,250,000 on $30 million of margin.

Barring someone taking the opportunity to unload a massive position against you, it would seem this would be a viable strategy on certain days for someone with a few bucks.

 

[AAAintheBeltway]

Manipulation? You guys are waaaay paranoid. Next you'll be claiming that the UN is anti-american, that the Democrats want a lousy economy and the major media is biased. C'mon.

I'm sure the fact that the day's highs and lows were taken out by two ticks before it reversed was just a coincidence. I also believe Merrill was as surprised as anyone by Enron , and that Jack Grubman made an honest mistake in WCOM and Global Crossing. No one's perfect.

 

[hardrock375]

Oswald acted alone...

We really landed on the moon...

And, Tupac and Elvis are still alive.

 

[dotslashfuture]

"Manipulation? You guys are waaaay paranoid. Next you'll be claiming that the UN is anti-american, that the Democrats want a lousy economy and the major media is biased. C'mon."

he he, good one AAA.

 

[dotslashfuture]

I define manipulation as buying or selling on a large scale with the intent of CAUSING or PREVENTING price moves. Reasons include derivatives positions, investment banking relationships, helping large clients get in or out at a good price, etc. In the case of a triple witch day, it is about derivatives. To dismiss it is like saying you don't believe murders happen because you never saw one.