Friday, May 1, 2015

Market Manipulation At Its Best!

ThiefCERR Investments:  Wow wasn't it interesting to see the DOW fall right before the Fed speaks and then rally one day afterwards. The big investors are playing chicken with the Feds. They are pulling money out of the market to scare the Feds into not raising interest rates and it is working.  Now Feds may not raise rates until September. Who is getting hurt in the game? Well REIT Funds, Oil and Gas, and Small Cap funds took it on the chin and I am hoping for a rebound today. 

However now that High Frequency Trading is going on no one really knows who is buying or selling. The fastest computer is the one that wins the day. So one says the market is rigged may not be too far off. People trading on the news of what others are getting ready to buy is not a smart idea and not ethical. I am sure the big boys have been doing this for years and are just starting to get caught. The news reports are saying this is new revelations about the Flash Crash that happen in May 6, 2010 with Navinder Singh Sarao.  He is alleged to have been at the center of the so-called 'flash crash', which knocked the major US stock market - the Dow Jones Industrial Average - by almost 1,000 points during one 45-minute period in May 2010, triggering hundreds of billions of pounds of losses (The Telegraph). New revelations? This has been going on all along and those guys know it. This is stock market manipulation and insider trading. Up until DOD Frank was passed this was legal. The U.S. Department of Justice alleges that Sarao used souped-up, off-the-shelf software to trick other market participants into thinking massive sell orders were about to hit, causing the so-called E-mini S&P futures prices to drop so he could buy at cheaper levels - "Spoofing". In doing so, he made $40 million in profits, U.S. authorities allege (Reuters). "Souped-up Off the market software", really?  Any equity firm trader could do this. Only us small investors are in the dark.  Here is an example: April 30 (Reuters) - CME Group Inc on Thursday suspended two traders from its markets for allegedly colluding to enter orders repeatedly with no intention of trading, a strategy that has been fingered as a key contributor to the 2010 Wall Street flash crash.