A Stain On Trading
“Gosh vegas, is there really manipulation going on?”
For those of you still in denial, there isn’t anything I can do for you; you probably still believe in the tooth fairy.
I mentioned in an earlier post some of the hallmarks of successful manipulation. I’m going to address the 3rd issue first: make sure the manipulation counts.
Aside from the front-running at the JPM proprietary trading desk [prop desk], which is another story for another day, you need a financial firm that can handle the orders and give you cover. What better firm than JPM, which continues unabated every single day violating CFTC position limits and is defendant in a number of Federal lawsuits alleging manipulation?
“Hey, you play ball, we make all these other problems go away; sound good to you guys?”
Ok, you now got the quid pro quo that allows you total access to the financial markets without revealing your identity. We let you front-run; we get anonymity.
“So sorry, we don’t comment on customer activity.”
Next on the list are the “wink wink nod nod” conversations and communications that don’t exist. This allows the front-running to be successful on JPM’s part because they trade in front of the orders and use the size of the manipulators orders to their advantage.
“C’mon man, there’s gotta be something in this for us?”
Besides that, they are privy to when the large sell orders are going to hit the market, so they can position themselves to cover short positions on the way down for their own account. This is borne out by CFTC COT data which shows “commercials” as the biggest buyers on big down days.
Gosh Mr. Regulator, it wasn’t us. Why, we were buying all day long. Anything else we can do to help?”
So, in effect they execute one order and the market does the rest. They get all the chartists and traders rushing in their orders to take advantage of the “new direction”, only they have been had. This explains why the “Lemmings in Asia” [LIA] have disappeared in the last 4 to 6 weeks; they’ve wised up. They now wait and buy the breaks.
Ask yourself this question: why do practically all of the big spikes and drops happen in the U.S. trading session? Easy peezee when you get what’s going on day to day.
This is the new paradigm for gold trading; manipulation on a scale that, up until now, is unprecedented. Get used to it, it’s only going to get worse and more blatant; all in the interests of national security or some such pap they will spin.
Why should you, as a trader, be allowed to profit off the government and their stupidity? I can see the puppets in the media spinning this already. Why not, Chalky Soetero has already declared war on oil traders?
I revised the algorithm to take advantage of these manipulations; it’s available free of charge for traders at the “Get It For Free” at the link.
Have a good day everyone.