Posted on 05/09/2010 8:12:18 PM PDT by antiobamacare
The major media say the chaos on Wall Street was the result of a “trader error, possibly a typo,” as the Washington Post put it. Some reports claim the culprit was a “fat finger” on a computer somewhere that pressed the wrong key. But Zubi Diamond, author of the Wizards of Wall Street, says these claims are all lies. “What happened in the market on Thursday is a typical example of pure market manipulation” by unregulated hedge fund short sellers.
His book, whose subtitle refers to the scam that elected Barack Obama, warns that the same hedge fund short sellers were behind the financial crash of 2008 that paved the way for Obama’s election to the presidency. Diamond says the historic market plunge on Thursday was “due to computerized hedge fund short selling because there is no protection for the invested capital in the equity markets. There is no uptick rule, no circuit breakers and no trading curbs. Our market is primed for manipulation.”
Diamond is referring to financial regulations, which have been repealed, designed to prevent market manipulation.
Diamond has been adamant in his view that the financial reform bill being pushed by Obama and liberal Democrats on Capitol Hill will do nothing to solve this problem and regulate the hedge fund short sellers.
“No one will come on TV to tell the truth,” he complained. Instead, he says representatives and apologists for the hedge fund short sellers, who operate as the Managed Funds Association (MFA), “go on TV and provide false explanation of what happened.”
(Excerpt) Read more at thewoodwardreport.com ...
Hmmmm....
Isn’t little Chelsey a hedge fund manager?
Didn’t they say they were going to zero-out the trades during part of that time?
It sounds like they should let everything stay in place.
No more bailing out people or entities.
It is just as David Horowitz has stated before, “We have Communist and Criminals” running Washington DC.
ya well some stocks like Boston Beer fell from near #60 to a penny and Accenture fell from $40 to a penny in a matter of seconds. Sotheby’s went in the other direction. After opening at $34.61, its shares briefly touched $100,000 before closing at $33. see more info on that here http://blogs.wsj.com/deals/2010/05/06/four-mega-drops-of-the-flash-crash-sam-adams-goes-flat/ — The NYSE Arca unit of NYSE Euronext (NYX: 29.26, -0.59, -1.98%) and Nasdaq, as well as other markets, planned to cancel all trades executed at prices that were greater than or less than 60% away from the last printed price prior to 2:40 p.m. Eastern time, up to 3 p.m. you can read that story here http://www.foxbusiness.com/story/markets/nyse-nasdaq-cancel-trades-height-volatility-thursday/ Im sure there is an update on that last one since it was a may 6 story, but it gives you an idea anyway
So I mean I think that it was a prudent thing for them to cancel the trades — because obviously there is a huge error in the system if stocks are going from $34 a share to $100,000 a share and from $60 to a penny in a matter of seconds.
The reason this sounds like complete malarky is that hedge funds have BOTH short AND compensating long positions AT THE SAME TIME, don’t they? Unless I’m completely mistaken THAT’S why they’re called HEDGE funds!
Maria Bartiromo also said she thot it was market manipulation.
I posted this the other day.
http://www.freerepublic.com/focus/news/2509164/posts?page=1#1
Don't get pulled into this conspiracy crap.
Fat finger BS !!!
It's a simple function of market mechanics.
1. If there are no willing buyers at a given time the bid is 0. This has always been the case.
2. If the market declines (when I say market, it's the market for individual securities) to a level that has been identified as my exit, my stop loss, the number that says get me out NOW. My stop orders (sell orders are triggered).
3. There is NO SUCH THING as a MARKET order when you use a Direct Access platform. They built algo’s that mimic market orders. The (automated market orders are actually IOC, immediate or cancel, orders) They will hit the best bid if your a seller with a selectnet preference and if your filled BUT still have more shares to sell it will hit the next best bid. A lot of individuals are now trading on direct access platforms and have no idea what they are doing.
4. All it takes is one guy with a few (10,000 shares or less) to get the ball rolling. These are STUPID orders but there is no one to say so and stop it.
5. Once a level (price point) has been broken it will trigger these STUPID orders. I used to make a lot of money off these guys.
6. If you recognized a Stupid order that was willing to sell at ANY price, What price would you be willing to buy at ? How about $1.00 or less on a $40.00 stock ? I would buy that all day, if I could. I once bot 3000 share of GE at $3.00 a share when it was trading at $53.00 (clearly an error, and the trade was busted)
7. There was a vacuum that was a perfect storm of events that can happen anytime and will happen again. It happened to DNDN about a year or so ago. The stock dropped from about 24 to 7 in less than 3 minutes. It was one big seller that had no clue how the system works beyond his keyboard. I looked at all the trades for ACN, a stock that went from 38 to .01 (whatever), it was no more than 10,000 shares that triggered the selloff. The best offer, when it traded at a buck was $ 33.00. It was a seller on auto pilot without safeguards or a clue of the way this market works.
8. SELL NOW !!!!
Are you sure ?
Yes
But,,,,,,,,,,,,,At this price ?,,,,,,,,,,,,,
The computer says yes, at any price.
It was kinda funny that as this was happening you could see that traders saw the stupidity, started to put in bids at sub $10.00 levels not knowing how many shares this bozo had, just hoping to catch a few shares.
I've been doing this for over 20 years. There are a lot of folks that have no clue how the market works.
I've seen “fat finger” errors, and this was not one.
This is the result of technology and efficiency that drive all aspects of business.
It's the wild wild west again !!!!
Time to make some money !!!!!
Sorry, but I have no patience for idiots that think they know what they are doing.
BTW, this same thing happened in the 90’s to the upside.
Order types:
Market
Limit
Stop market
Stop limit
Limit AON
Market “not held” (love this one)
Fill or Kill (generally stupid)
IOC (immediate or cancel)
MOO (market on open)
MOC (market on close) (because they have too) this is easy cash.
These are your basic order types. There are variations and combinations that are used for various reasons.
At the end of the the day, you need to know what your doing and WHERE you are playing. This is the most competitive arena you can engage.
Be Safe
Huh? How can you justify anything from your words?
Those became excellent buying opportunities! If you could buy something worth $60 for a penny, what’s the problem there? If you think your share is still worth $60, you don’t sell. If you think a penny is great for it, when sold by someone for that, then buy it.
There’s absolutely NO REASON to cancel these trades!
“There’s absolutely NO REASON to cancel these trades!”
Amen!
Cancelling those trades has ended the credibility of the stock markets forever.
.
The market is going down because it’s trash covered in lies, and over valued to boot. The only scandal is the 500+ point rocket shot back up. PPT anyone?
“Unless I’m completely mistaken THAT’S why they’re called HEDGE funds!”
Correctamundo!
The trades should stand.
We have become a society that is protecting STUDIPITY.
I did run the spellcheck
Not just protecting, but rewarding it.
Hell, you’ve coined a new descriptive market term!
.
Claim victim or ignorance and with or without a lawyer you’ll get your money back or more.
The only thing that stopped a total plunge [ even further that is ] was a Reagan era law which kicked in to put the brakes on the spiraling drop.
Manipulated so the gov’t can bury Wall Street with regulations as to justify, yet another segment of the economy, to be controlled and owned.
that’s funny
Be bold you market playing STUD !!
When you lose, just get UPPITY !!
Get your money back.
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