Market manipulation on display

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John99's picture
John99
Status: Gold Member (Offline)
Joined: Aug 27 2009
Posts: 490
Market manipulation on display

A youtube vid of market maipulation in progress and an article about same from Zh:

.......a fake order depth which disappears on a moment's notice, a dramatic shift away from traditional marketplaces and to "gray" venues, and most importantly, a massive surge in the cancellation to execution ratio, which is currently at an all time high, with the Nasdaq seeing 30 cancels for every execution. With so much probing and poking by computers to test which bids and offers are real, it is a miracle we don't have flash crashes every single day, as the bulk of the liquidity, likely well over 90%, is a sham.

http://www.zerohedge.com/article/guest-post-major-structural-changes-us-equity-markets-you-must-know

goes211's picture
goes211
Status: Diamond Member (Offline)
Joined: Aug 18 2008
Posts: 1114
Re: Market manipulation on display

It is clearly being manipulated but who in there right mind trades the MSPU after hours ( or on an holiday like July 5th ) and does not expect it to be manipulated?  There is NO LIQUIDITY in after hours markets.  They are there if you want/need to make a bet or offset some risk, but there is no real price discovery, at least outside of an hour before or after normal trading hours.

John99's picture
John99
Status: Gold Member (Offline)
Joined: Aug 27 2009
Posts: 490
Re: Market manipulation on display

A good point, goes, but what about the ZH article siting info on the Nasdaq?

a massive surge in the cancellation to execution ratio, which is currently at an all time high, with the Nasdaq seeing 30 cancels for every execution

goes211's picture
goes211
Status: Diamond Member (Offline)
Joined: Aug 18 2008
Posts: 1114
Re: Market manipulation on display

I don't know what you want me to say.  I am actually surprised if there is a 30 to 1 order to fill ratio.  I would guess it to be even higher.  My day job is in the markets and nothing surprises me any more.  I totally agree that the massive increases in ordersizes does not indicate any additional liquidity and that flash crashes are probably going to happen far more frequently as liquidity disappears at the exact moment it is really required.

land2341's picture
land2341
Status: Gold Member (Offline)
Joined: Aug 20 2009
Posts: 402
Re: Market manipulation on display

Is it possible some of this is the manipulation by the PTB to try to keep the market afloat when it really should have crashed already??  Because we all know this puppy should have gone down.  

The manipulation would be for their own profit, of course,  but would it also be to prop it up??

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