Another rather good analyst feels gold will rally into May/June
if it can hold above $1125. They were expecting a pull back to
1140-1125. There exit is a drop below $1125.
First
a little background on why the SPY would be a good target for some
undercover manipulation. As you may or may not know
ETF's run our retail markets. The
S&P depository Trust buys and sells individual components of
the S&P's based on movement within the index. Simple right?
Well if you say, "Screw it, I am purchasing the 500 S&P
components via the SPY ETF. Now i can buy little pieces of the
components without laying out the cash to buy them individually."
GREAT! If you are a buy and hold investor looking to leverage your
hard earned dollar. Now lets think about how the normal operation
of the SPY can cause manipulation...
*If
there is a huge buyer day in and day out of the SPY whom has no
interest in holding for a long period of time how would this affect
the components? The direct affect of SPY purchasing would cause the
cash market(individual stocks, not futures) to trade in a much more
liquid manner in whatever direction the purchaser is
leaning.
Now
for the juicy stuff,...For months now i have been watching a
specific algorithm push our markets around with great ease. It
looks like this algo is giving the SPY a little push through
support and resistance levels with massive size executed in
seconds. Sometimes the push is tens of thousands of shares, the
size all depends on the natural volume around the level which the
SPY is trading at the time it may need a "Jump". For instance if
the market is oversold on a 1 min time frame and is trying to break
higher off lows but just cant get the party going on its own, the
algo will come in and take offers until day traders, scalpers,
swing traders jump in and chase the market higher. Once the price
gets "jumped" the algo just sits and waits till natural buyers and
sellers are few and far between and it either dumps or takes in
more. Usually the program will reset itself after a trade, then
will wait till it senses low volume once again.
For some concrete evidence of this
action i have done a quick illustration, which includes Time &
Sales which only display prints on the exchange the algorithm does
business on. This exchange is used because of its very nice rebate
structure, and it allows the algo to
exploit the SOES,meaning it cannot trade in blocks larger than
10000 shares per order. So what does it do, it takes blocks almost
10,000 shares multiple times a second, this price action causes the
market to lift violently. This is not small money, remember small
money follows big money.
The algo in question starts buying at 110.04 with one block
of 9999 shares, followed by 60k more shares all bought in under two
minutes. You can see from the chart how the SPY reacted, it
violently moved higher all the way up to 110.55, where the algo
dumped just about all of the shares, you can see the prints in the
"dump" prints window, again only showing the print from the
exchange the algo does business on. The algo did its job, the cash
market snapped back, the components again caught a bid and moved
higher through resistance. I.E. they look alive and well... Natural
buyers came in above the 110.55 level chasing the market up another
50 cents or so before they left and the SPY fell again because the
volume was not there to support the massive run up which took place
over 15 minutes. As you can see the algo works in two capacities,
it manipulates the market to the upside along with keeping
S&P500 components trading in a liquid orderly "non flat"
fashion.
The
650,000,000,000$ question now is.. What would our markets look
like if this "jump starting" was not taking place every day? I
think you know the answer.
The community is delayed by three days for non registered users.
Market Guy
Aw come on Market Guy
Posted by whistlebear on 21st of Jul 2011 at 09:39 pm
Germany buys alot of its
US$ COT
Posted by whistlebear on 30th of May 2011 at 10:32 pm
Germany buys alot of its power from France, which is either 60 or 90% nuclear!
So there just opting out of the plants on German soil for Political reasons, and going nuclear through France!
LOL
All Topics
Posted by whistlebear on 14th of May 2011 at 06:14 pm
Maybe they know, and want to look good!
Canadian Exchanges Closed Today - Jan 3-2010
Posted by whistlebear on 3rd of Jan 2011 at 09:56 am
Please be advised that they are closed today.
INSIDER SELLING ?
Posted by whistlebear on 2nd of Jan 2011 at 10:15 am
Wondering if anyone has the latest on Insider selling ratios to buying?
Thank
Copper
Dr. Copper is self medicating!!!!
Posted by whistlebear on 21st of Dec 2010 at 03:03 pm
Rumour is JP Morgan is buying alot of copper for their copper ETF?
China has warehouses full of the stuff.
IWM
IWM
Posted by whistlebear on 29th of Nov 2010 at 01:34 pm
OBAMA & the PPT
I know things are bad in Ireland...But C'mon!
I know things are bad in Ireland...But C'mon!...
Posted by whistlebear on 22nd of Nov 2010 at 07:51 pm
Don't ya know, that's where the Lepricon's have all their gold stacked up in hiding.
Who would ever think to look for gold in a trailer park?
No one!
stockcharts not working for me either
Anybody having problems with stockcharts?
Posted by whistlebear on 9th of Nov 2010 at 10:16 am
Dollar Rebound
A different kind of Sunday night -- Somebody is trapping the dollar shorts
Posted by whistlebear on 7th of Nov 2010 at 11:20 pm
Just a thought.
A couple of newsletters are suggesting a 3-6 month rise in the USD before it gets taken to the woodshed again.
ha
Happy Birthday Matt
Posted by whistlebear on 24th of May 2010 at 03:36 pm
International Stock Market Holidays
Question
Posted by whistlebear on 21st of May 2010 at 03:55 pm
Just Canada on Monday - some European I believe next Friday.
GOLD & Silver Absolutely Smashed!
GOLD & Silver Absolutely Smashed!
Posted by whistlebear on 16th of Apr 2010 at 11:42 am
Another rather good analyst feels gold will rally into May/June if it can hold above $1125. They were expecting a pull back to 1140-1125. There exit is a drop below $1125.
Stockcharts
stockcharts.. is not auto updating for me..Is it just me?
Posted by whistlebear on 19th of Mar 2010 at 09:45 am
Market Manipulation
Posted by whistlebear on 24th of Feb 2010 at 11:19 pm
Wednesday, February 24, 2010
Is the SPY getting a "Jump" at key levels from a quant algo?
I am growing more and more tired of seeing what appears to be a very "helpful" algorithm running in the SPY. I am using the term "helpful" very lightly. I relate this algorithm to a jumper cable, your car will run once you get the jump if your battery is running low right?
Now lets say volume in our market is equivalent to a discharged but not quiet a dead battery yet. Symptoms of the market being a "dead battery" are sluggish movement through key pivot levels on a daily 1 min chart, along with violent price spikes within the 1 min candle.
So how do we fix a market which does not have the Umph it needs to stay liquid and trade while not remaining flat all day after the initial 30 min opening volatility? A quant algo of course!
First a little background on why the SPY would be a good target for some undercover manipulation. As you may or may not know ETF's run our retail markets . The S&P depository Trust buys and sells individual components of the S&P's based on movement within the index. Simple right? Well if you say, "Screw it, I am purchasing the 500 S&P components via the SPY ETF. Now i can buy little pieces of the components without laying out the cash to buy them individually." GREAT! If you are a buy and hold investor looking to leverage your hard earned dollar. Now lets think about how the normal operation of the SPY can cause manipulation...
*If there is a huge buyer day in and day out of the SPY whom has no interest in holding for a long period of time how would this affect the components? The direct affect of SPY purchasing would cause the cash market(individual stocks, not futures) to trade in a much more liquid manner in whatever direction the purchaser is leaning.
Now for the juicy stuff,...For months now i have been watching a specific algorithm push our markets around with great ease. It looks like this algo is giving the SPY a little push through support and resistance levels with massive size executed in seconds. Sometimes the push is tens of thousands of shares, the size all depends on the natural volume around the level which the SPY is trading at the time it may need a "Jump". For instance if the market is oversold on a 1 min time frame and is trying to break higher off lows but just cant get the party going on its own, the algo will come in and take offers until day traders, scalpers, swing traders jump in and chase the market higher. Once the price gets "jumped" the algo just sits and waits till natural buyers and sellers are few and far between and it either dumps or takes in more. Usually the program will reset itself after a trade, then will wait till it senses low volume once again.
For some concrete evidence of this action i have done a quick illustration, which includes Time & Sales which only display prints on the exchange the algorithm does business on. This exchange is used because of its very nice rebate structure, and it allows the algo to exploit the SOES,meaning it cannot trade in blocks larger than 10000 shares per order. So what does it do, it takes blocks almost 10,000 shares multiple times a second, this price action causes the market to lift violently. This is not small money, remember small money follows big money.
The algo in question starts buying at 110.04 with one block of 9999 shares, followed by 60k more shares all bought in under two minutes. You can see from the chart how the SPY reacted, it violently moved higher all the way up to 110.55, where the algo dumped just about all of the shares, you can see the prints in the "dump" prints window, again only showing the print from the exchange the algo does business on. The algo did its job, the cash market snapped back, the components again caught a bid and moved higher through resistance. I.E. they look alive and well... Natural buyers came in above the 110.55 level chasing the market up another 50 cents or so before they left and the SPY fell again because the volume was not there to support the massive run up which took place over 15 minutes. As you can see the algo works in two capacities, it manipulates the market to the upside along with keeping S&P500 components trading in a liquid orderly "non flat" fashion.
The 650,000,000,000$ question now is.. What would our markets look like if this "jump starting" was not taking place every day? I think you know the answer.
Charts
FXP
Posted by whistlebear on 27th of Jan 2010 at 08:12 am
Well I like em.
Thanks Kevin
A natural explanation for strong Mondays, anyone?
A natural explanation for strong Mondays, anyone?
Posted by whistlebear on 22nd of Jan 2010 at 11:52 am
It always hapens on Monday - the PPT is goosing the markets starting in the East, with the US index futures.
BAC
BAC
Posted by whistlebear on 9th of Dec 2009 at 04:16 pm
I think it was the FED, but they will never admit to that. They want everybody to continue to believe in this Magic Show.
Quick Format
Mattt, Love the quick format for the weekday updates
Posted by whistlebear on 3rd of Dec 2009 at 10:00 am
Conspiracy
lol here's a conspiracy theory for you to chew on. Let's ...
Posted by whistlebear on 27th of Nov 2009 at 12:44 pm
And Goldman Sacs was their advisor, they too made a sh.. load on this!