Thursday, September 30, 2010

Today's Mystery Question

Today's Mystery Question is:
Do you know what this is?

"basehitz" says:

"Signs of manipulation are everywhere.
"Example: My live trading screen provides 1 second resolution. Monitoring with volume is the key. When I’m looking for what the puppet masters “want” the market to do, I watch SPY. I have repeatedly observed this sequence:
• Bad economic data is released.
• Market plunges 1%+.
• Some minutes pass.
• If the fall pauses, an unusually high spike in SPY begins the reverse. The volume spike might be 250,000+ shares. That’s $25M spent in < 1 sec.
• A few minutes passes, another jolt follows.
• This process is repeated until the move back up starts. The algo-ramp bots are then in control and day traders chase it.
• Subsequent retracements are “allowed”, but not enough to disrupt the trend. More buy orders jolt the index higher again. In some cases, repeated jolts are fired.
• You can almost watch them “engineer” the turnaround and ramp."



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