Posted on 07/04/2010 11:45:20 PM PDT by verklaring
Market Manipulation On Display
"Rarely does it get this blatant..... this ...goes on every day, but once in a while it's just "in your face."
Tonight was one of those examples."
(Excerpt) Read more at market-ticker.org ...
Isn’t there some way to trap the guy into a bad trade?
The post actually relates to currency markets not stocks. SEC doesn’t have jurisdiction over currency futures markets (CFTC in US). Ol’ Karl ought to get the basics right before peering into the souls of currency traders.
That is what happened when the market almost crashed a few of weeks ago and certain stocks were trading at close to zero. The point is that this is going on with individual stocks, indexes etc. by High Frequency Traders, run by high speed computers at banks and hedge funds.
It is a way of painting the tape, which is illegal.
The video is of the /ES futures, which are the S&P 500 futures and not the currency market. The futures globally, also the USA stock market futures, are open over the holiday on Monday the 5th as the world markets do not have the day off for July 4th.
This kind of manipulation effects where the market opens on Tuesday. It is an example of what is going on in stocks and currencies.
Isn't this a scene of Anarchy, Lawlessness and pure evil?
Is this by the same token a scene of Western Civilization staring at it's own self-inflected destruction, fueled from a breakdown of morality at all levels of society?
Just asking.
...”a breakdown of morality at all levels of society”
I think you answered your own question.
The breakdown in the rule of law, that is of morality in the public sphere, rooted in a fundamental breakdown in morality, a doctrinal issue, which is the underlying problem.
The point of posting the example, there are others, is to at least give some a heads up so that they are not defrauded further.
Yes I am quite sad at what I see, it’s like French/Communist Revolutions simultaneously occurring on steroids in a compressed time scenario (even though what we see is the culmination of organized evil programs propagated since the mid-1800’s)!
http://seekingalpha.com/article/151173-hft-the-high-frequency-trading-scam
Ok, is this the “oh-crap” moment?
I have about 10 years before I retire and I have a 401k. Should I cash it in while there is still something there?
Libertarian author Harry Browne once suggested a "permanent portfolio" of 25% Stocks, 25% Bonds, 25% Cash, and 25% Gold.
There's a lot to be said for this approach, but I'd offer the following considerations:
Regardless, when I was managing money full-time, I generally advised my clients to have no more than (100% minus Age) in Stocks. It's a good (and bloody simple) rule of thumb with which to correspond risk levels to lifespan. IOW, if you're in your 20s, having 80% in Stocks for the long run can make a lot of sense, if you can bear the risk. If you're in your 50s, having no more than 50% in Stocks would be more appropriate.
So I don't claim to know if this is an "oh, crap" moment (though I have been making more money shorting the market lately, than I have on the long side); but it might not be a terrible "oh, do my allocations match my expected risks-vs.-life-goals" moment.
I believe it is a “retirement date” fund. I have seen losses when the market takes a dive.
You would. "Retirement-Date Funds" robotically allocate your investments based on some variation of the (Stocks = 100% minus Age) rule of thumb I mentioned earlier.
But I hate the things, because (for the most part) such "wrap funds" are basically just a way for brokerage firms to sell you a Stock Fund and a Bond Fund, "wrapped" together, with an extra layer of fees on top! Maybe yours are better, but I've seen examples of this sort of thing which were just criminal IMHO.
I always advised my clients to (maybe with a little of my help) sit down and decide for themselves which Stock funds they liked and which Bond funds they liked, make their own allocations, and so only pay one layer of fees.
I suspect that this is being done either by the government, or others with the approval of government. The excuse is to defeat wild market oscillations and prevent crashes.
In other words, rigging the game. Keynesians would assert that this isn’t even unethical, as long as government is doing it.
As evidence, for the most part of the year, stock market volume has been small. Investors are neither buying or selling, because trust is low.
bttt
Hopefully you always had savvy clients who did not need your service or experience but just came to you to give you money for no advice. What if your client wanted to overload bond funds in a rising interest rate environment? You always advise those clients to decide their own allocations?
I don't trust anyone for anything anymore.
No, I steered them, I just tried to stay away from "wrap" funds and other such high-fee products.
I think that you can ethically sell a client a Bond fund in a rising-interest rate environment, if you steer them towards a short-term Bond Fund or an Adjustable-Rate-Note fund which will produce higher dividends as rates increase... don't you think?
I mean, you can always go back to Long Bonds if you think that the rate cycle is topping out.
His connection with the lack of intention to execute is unproven.
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