More than a stock tip:

[Gaucho]

http://www.sosuave.net/forum/showthread.php?t=172527&page=9

Don't say I didn't tell you.

 

[Wiesman44]

http://www.sosuave.net/forum/showthread.php?t=172527&page=9

Don't say I didn't tell you.

Whats with this sudden need for validation on a forum ?

You want attention ? You want people to tell you, wow you are right !


Well here, wow you were right ! you're awesome

 

[Gaucho]

It was more of a grin to loud mouthed kids.

I don't care for the validation. My fund is showing that right now. Short Asian equities, short AUD/USD, short EUR/NZD, short AUD/CAD, short EUR/USD, long gold/financials. That is what you call trading. Not this punting junk on specs that so many kids get excited about with $$$ signs in their eyes.

 

[cordoncordon]

It was more of a grin to loud mouthed kids.

I don't care for the validation. My fund is showing that right now. Short Asian equities, short AUD/USD, short EUR/NZD, short AUD/CAD, short EUR/USD, long gold/financials. That is what you call trading. Not this punting junk on specs that so many kids get excited about with $$$ signs in their eyes.

We bow to your superior intellect.

BTW I'll match my portfolio % performance, AND my bank account, against yours any day of the week, and twice on Sunday.

 

[BigJimbo]

We bow to your superior intellect.

BTW I'll match my portfolio % performance, AND my bank account, against yours any day of the week, and twice on Sunday.

You are an Internet Stud.

 

[Create Reality]

Haven't seen the ball bounce like this for at least a year.

Been watching mmrf, cordon looks like he is ****ting his pants!

 

[Mr.Positive]

I've never seen anything like this....dow crashes almost 1000, then bounces back for 600.

Hopefully, the bounce isn't a dead cat bounce, precluding another crash.

Crazy times. This is what happens when people panic, it hurts everyone.

 

[cordoncordon]

I've never seen anything like this....dow crashes almost 1000, then bounces back for 600.

Hopefully, the bounce isn't a dead cat bounce, precluding another crash.

Crazy times. This is what happens when people panic, it hurts everyone.

This wasnt a panic. This was an orchestrated take down by someone/something with power who caused a quick crash, in cahoots imo with probably someone like Goldman to then take out as many stop loss orders as possible-in other words the market makers get cheap shares, then take the price right back up.

Dont believe me? I can give you 2 examples. Look at POZN about 2 weeks ago. Stock has made a nice run from around $5 to over $12 because people were buying in anticipation of the FDA giving approval for a drug POZN was testing. So the day that the FDA was to make their decision, in about a 3 minute span POZN dropped $7 to $5.50. Now, Nasdaq stocks DO NOT do this type of thing unless there is some sort of horrible news that comes out, likea FDA drug denial. But there was no news here. This was an orchestrated market maker take down that then took out all the stop loss orders from the retail traders, then when the market makers got what they wanted, they took the price right back to over $12, all in the matter of 3 minutes. Sure enough later that day the FDA ruled positively, and the stock did well. (though its down now). So your everyday guy trader, who works all day and cant watch the market and who puts in a stop loss order at lets say $8, basically had his shares stolen from him. Its criminal. DNDN did the same they got FDA approval. Dropped from like $23 to $8, and right back to $23, all in a few minutes.

My point being, we are just the small fish. The powers that be (like Goldman) have no feelings or consideration for us. They are the biggest scammers out there, and the govt does nothing. They scammed us during the economic meltdown the past two years by getting large US companies and Banks for pennies on the dollar, and they just did it again.

 

[cordoncordon]

Average Investors Fleeced Again By Wall Street
Posted on May 6, 2010

By Brandon Matthews

http://satwaves.com/blog/2010/05/06/average-investors-fleeced-again-by-wall-street/#more-6393

Chances are that you went to work this morning with some very nice gains in your portfolio, only to come home to find that your stop losses triggered and your shares were sold well below the value that they are now selling for.

Already, the markets have begun finger pointing, and are offering to investigate what really happened. In the end, a nominal fine will be issued to the firm that caused today’s sell-off, while billions in shareholder value were wiped out, to the benefit of firms with program trading capabilities to take advantage of these market meltdowns. The fine will not be paid to investors who were fleeced today, but rather the U.S. Government.

We saw an example off this two days ago, when we heard that Goldman Sachs (NYSE: GS) had been fined $450,000 after an investigation revealed that the company had ignored laws designed to protect investors by violating naked short sale rules. Goldman Sachs responded that none of its investors were harmed, indifferent to the billions of dollars in shareholder value that was wiped out and lives destroyed through their actions.
Sirius XM Radio (NASDAQ: SIRI) investors are all too familiar with naked short selling. I had long suspected that Goldman Sachs was responsible for the Naked Short attack on Sirius XM in 2007, and took part in a documentary titled, “Stock Shock” – The Short Selling of The American Dream. Unlike most victims of naked short sale attacks, Sirius XM survived and the SEC has neglected to look into anything relating to Goldman Sachs that did not involve a banking collapse.

Today’s action will have resulted in what amounts to grand larceny, in which retail investors will have had their positions wiped out for pennies on the dollar, and will now have to buy back in at much higher prices. All of this occurred in a matter of minutes. The circuit breakers that would have tripped the markets today prevented further losses and allowed Wall Street’s largest firms to reap the rewards on their computerized trading programs.

For investors that continue to hold positions, or investors looking to buy back in, I suggest buying puts rather than using stop losses not only on Sirius XM but on all equities within your respective portfolios. Puts are insurance against large declines, and the potential exists that confidence will be tested in the coming weeks following what can only be looked upon as the ultimate manipulation of the stock market to date

 

[wait_out]

From at least the horror stories I hear, aren't the guys who are REALLY making serious bank on the stock market guys running pump & dump schemes or who actually possess insider information?

Insider trading may be a crime, but I'm sure plenty of it must happen anyway. That puts honest investors at a serious disadvantage. If you're small fish -- isn't dealing with high-risk stocks a bit like trying to outwit the casino?

The house always wins in the end...

EDIT: http://mixa.blog.is/blog/mixa/entry/1050973/
WP article
more good stuff

finally

But we’re still left with a cultural problem. Some people still think that money that comes from money is free. Contrast the money-world with the real world, where actual work still matters. Feeding a cow for 20 months and then slaughtering it and selling the meat is obviously hard work, not easy money: It takes labor and money for the feed, and for the vet’s bills, and for keeping the fences up, and then one must also deal with all that excrement. Running a pizzeria costs money and takes work, as does running a law firm or a factory. But when we put money into a broker’s hands or have somebody do it for us in a pension fund, then new money that is begat by money just sort of happens. The magical process of money spawned by money has changed everything in America: The new rule of American life is that clever people don’t actually work, they just make money with money. The measure of one’s cleverness is one’s portfolio’s performance. The farther somebody is from having to shovel **** on a farm, twirl pizzas, write wills, or manage a shop floor, the smarter one is, the wiser, the more blessed

 

[Powerlifter]

I have been looking at Raptor they are working on a cancer drug whats your take on how much upside this stock would go up if the drug is a winner?

It's holding at 3.18 and I would buy at least 8000 shares maybe more http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RPTP&selected=RPTP

Powerlifter

 

[Mr.Positive]

Thanks Cordon, sure makes sense. Of course, the media is saying it was some glitch. A trader perhaps, pushed the wrong button....button B for Billions, instead of M for millions, and then went outside for a smoke break.

Big banks stealling from the people again. I wonder how much longer this will go on before people take to the streets, like in Greece.

I am also curious, if this will cause investors to flee the market into bonds, creating a bond bubble.

 

[Axcell]

Thanks Cordon, sure makes sense. Of course, the media is saying it was some glitch. A trader perhaps, pushed the wrong button....button B for Billions, instead of M for millions, and then went outside for a smoke break.

Big banks stealling from the people again. I wonder how much longer this will go on before people take to the streets, like in Greece.

I am also curious, if this will cause investors to flee the market into bonds, creating a bond bubble.

Well the price of gold shot up today substantially, investors are fleeing towards gold for sure.
Market did horrible again today. But there were some decent buys. As for the scandal, anything at 60% loss in that period or over was revoked i.e. the stocks that went to a penny. Although people who got in on Apple at $216 I believe were lucky...

 

[Gaucho]

You are a complete idiot Condon. This was an error, obviously. Have you never seen an order flow when this kind of thing happens? Most of the time, the market moves through the low of the tail anyways!

I told you the market was coming off a week before this 'error' when the market was much higher. That's called trading, you would have been on the right side of this 'error' if you knew how to trade anyways!

 

[cordoncordon]

You are a complete idiot Condon. This was an error, obviously. Have you never seen an order flow when this kind of thing happens? Most of the time, the market moves through the low of the tail anyways!

I told you the market was coming off a week before this 'error' when the market was much higher. That's called trading, you would have been on the right side of this 'error' if you knew how to trade anyways!

You believe what you want, and I'll believe what I want. If you think some junior trader accidently entered a sell for $15 Billion instead of $15million ( I dont even see how this is possible) then you also probably believe the US Federal Reserve are our friends. Keep drinking the Kool aid.

 

[Amazing]

Cordon is cool in my book, and u don't know **** OP


the world is ran by the ones with most $$ who sponsors us gov-t ?

 

[Mr.Positive]

Well the price of gold shot up today substantially, investors are fleeing towards gold for sure.
Market did horrible again today. But there were some decent buys. As for the scandal, anything at 60% loss in that period or over was revoked i.e. the stocks that went to a penny. Although people who got in on Apple at $216 I believe were lucky...

Noticed that about gold, and actually sold some yesterday. Hopefully, made the right move and sold at the top.

I wonder if this whole drop will just end up being a small blip in the radar, and come Monday, everything will stabilize and be back to normal.

I agree with Cordon, there's no way an 'error' could cause the biggest drop in the Dow in over 20 years. I believe the market is fragile, but not that fragile... There was a large transfer of wealth going on, by intention.

 

[cordoncordon]

Noticed that about gold, and actually sold some yesterday. Hopefully, made the right move and sold at the top.

I wonder if this whole drop will just end up being a small blip in the radar, and come Monday, everything will stabilize and be back to normal.

I agree with Cordon, there's no way an 'error' could cause the biggest drop in the Dow in over 20 years. I believe the market is fragile, but not that fragile... There was a large transfer of wealth going on, by intention.

Gaucho needs to drink some more koolaid, here is the most logical explanation as to what happened Thursday, as I stated the other day. To honestly think the entire thing was caused by some guy typing in a B instead of an M (which isnt even how its traded) is beyond ludicrous. But Gaucho actually believes it? Tells you ALL you need to know about his mental capabilities.



Hedge fund manipulation, not error, was behind market plunge
By Cliff Kincaid, Accuracy in Media

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.”

Diamond says these false explanations include claims of trader error and computerized glitches.

An example of Horatio Alger’s legendary rise from rags to riches, Diamond came from Africa to the U.S. and became a successful businessman, stock market investor and trader. He has about 15 years of financial market experience and more than 23 years experience as an entrepreneur.

Diamond says that the repeal of the safeguard regulations, such as the uptick rule, circuit breakers and trading curbs, and the introduction of the short ETFs (Exchange traded funds), which began under Christopher Cox at the Securities and Exchange Commission, has given the members of the MFA tremendous power and influence. He says these individuals include George Soros, John Paulson, Jim Chanos, James Simon, and other hedge fund short sellers, including those who operate Quant Funds and engage in computerized trading.

“They have the ability to manipulate U.S. and some international markets,” he says. Indeed, Diamond maintains that the MFA has basically taken control of the U.S. stock market.

My March 4, column, “Who’s Behind the Financial Crisis?,” quoted Diamond as then warning that any asset class that is traded in the NYSE, CME, or EUREX exchanges “is susceptible to manipulation by the members of Managed Funds Association and their strategic partners.”

In a previous column for AIM, commenting on the so-called financial reform bill now before Congress, he explained, “The only financial reform needed today is to regulate and monitor the hedge funds and the hedge fund short sellers, some of them which are registered off-shore to avoid scrutiny. These global operators, with investors who remain mostly anonymous, must be compelled to register with the Securities and Exchange Commission (SEC), publicly disclose their positions in the markets, and maintain accounting and trading records for a period of 10 years so their activities can be monitored and scrutinized. Just like mutual funds, they must be prohibited from engaging in day trading activities.”

“What happened on Thursday happens to a select group of individual stocks on a daily basis as the hedge fund short sellers prey on common investors,” he asserted. “They are now expanding the manipulation to include the whole market. They can now crash the market, panic shareholders out of their stocks, buy to cover their short positions for hefty shorting profits, and then buy back in at the bottom to open long positions and then recover the whole market (indexes) to normal levels.”

These market manipulators, he notes, have the ability to drive prices down and then drive them back up, all within a 15 minute period. “How’s that for no-risk investing?” he says. “They make money through stock price volatility and market volatility. They manipulate stock prices through unrestricted short selling.”

Diamond said that one stock, Accenture, with the ticker symbol ACN, dropped from $44 dollars to .01 cent per share within 15 minutes, and recovered back to $41.00 dollars. Apple computer ticker symbol AAPL dropped 60 points in 15 minutes. It went from $258 down to $199 and then recovered to $248. All of this happened within a 15-minute period.

All of this is possible, he says, because there is no uptick rule, no circuit breaker and no trading curbs. All of these regulations were repealed, meaning that the risk and fear of investing have been transferred solely to the common investors “as the hedge fund short sellers operate with impunity looting the invested capital of American families,” he explains.

“What happened on Thursday will happen again,” he adds. “They are getting bolder every day. The hedge fund short sellers, who are members of Managed Funds Association, and their strategic partners at the different stock exchanges, are responsible for the scam that was perpetrated on Thursday.”

“The market plunged and recovered,” he says. “The carnage and destruction of investor’s capital was therefore concealed.”

“This is the evil of hedge fund short selling in an unregulated market,” he says.

 

[Gaucho]

lol, you are a complete fool. Reasons for the rally, which include underlying psychology, global macro fundamentals, volume spread analysis, correlation breakdowns (gold correlation shifted while equities were in their final range at the top of the move).

Here is a piece I wrote at the high of this move a little while back:

That's what I got (the last of the 3 big down moves in the range at the top would result in one more push higher which would only be a lower high).

Huge spike in CDS spreads, even the bund has moved higher than the UST.

Last time we got a spike like this in spreads, it frontran the subsequent piling into 'safe havens'.

Financial ETFs are down, financials have been strongly correlated with the 'risk trade'.

Many 'risk trades' are now over-crowded, huge net speculative long positions and vice-versa in 'safe haven trades'.

Monetary restriction and targeted fiscal expansion in China is now taking place, great for longer-term real growth, bad for short-term financial markets IMO.

Gold even rallied last night, as opposed to Friday when it also came off. Interestingly, gold was correlating with equities on the first of those big risk off nights. Inflation is low and economic uncertainty was low after stimulus and liquidity pump, yet gold held it's worth, it must be a play on currencies. Notice on one of those big down nights in that final top range, gold decoupled and actually rallied when 'risk' came off?

Even got financial regulation moving closer and closer to the forefront which will effectively lower financials prices and the expansion of credit. Many CBs looking at moping up liquidity to that end also.

Above market earnings reports are prooving less and less of a bid for equities (factoring in of top-line growth may already be over).

You also had the shift from small caps outperforming large caps for a period, to vice-versa.

On shorter-term timing, I was talking to TH (an extremelly good short-term trader) about how whilst prices were at highs, there were fewer and fewer stocks making 52wk highs and more actually making 52 wk lows. This was while the advance/decline line was also in overbought territory. Perfect scenario for a pullback as far as market breadth.

As far as VSA, all the way up the rally, you would get price moving to highs, and flirting with it, before going through. I.e. there was no supply up there yet demand was enough to keep price sticking on highs when it got there and moving through even if on low volume.

Yet, the highest point of this rally was on basically no volume, and failed to push higher. You also saw the last of the 3 big down nights on the lowest volume of all 3 of them. Demand was running dry. The moves higher on low volume which also failed to push and hold near that candle which set the high on low volume were a bearish sign.

I.e. the entire rally saw little supply, yet demand present. This time saw little supply, but no demand present.

Obviously, there was a huge stockpile of longs, and once price fell below the level of those 3 big volume down candles, you would be nearly guaranteed to have a few panicking for the exits.

Now go trade a guess on news on that low liquidity spec and create another conspiracy! If you knew how to trade you would know to be short.

 

[Julius_Seizeher]

Fvck, I just wish I was in front of my computer when this happened.

The question is, how much will it harm the markets to begin regulating hedge funds? Would such regulations have a "blanket effect" and make it further impossible for everyone to make money?

I think I'm for this kind of regulation. Across the investment world, the animals are running the zoo. I'm not a basher of the rich, I'll be joining your ranks, but hedge funds and market makers have too much power. Speculative risk is the Iron Law of Investing, risk is God, and anytime someone is able to profit from an ability to manipulate markets in the absence of risk, something has to be done. Otherwise, the integrity of the entire machine is compromised.

The worst damages from market manipulation are in the mind of the average investor/consumer. His confidence in the system into which he puts his money is the grease on the hub; it keeps the world turning. Above all, if he does not invest, the bearings get hot and the whole thing breaks down, and the hedge funds have no one to steal from anyway.