champagne corks are popping, page-15

Rager1965

I find your post a little misleading and I would like to know from what market background you come that supports your informed view. I say that because I am prepeared to stand corrected. However, in my experience as an investor over around 25 years, there have been remarkable changes in trading of equities, especially over the last few years. Those changes have contributed to all types of market manipulation by those whose pockets are deeper than typical retail investors. My definition of "retail" would be up to $1m portfolio.

In recent years there has been a dramatic rise of derivative type trading and involvement of Hedge Funds that play both sides of the market. Examples are use of warrants, options and CFDs and the development of all sorts of trading strategies for both short and long term returns....while there is "basis" risk, we commonly see hedge funds that will go long or short a commodity, while doing the opposite on a producer of that commodity...or for investment banks to trade short positions in commodity producers, when the intention is for their commodities desk to short the commodity etc etc....

Nearly all of these developments have occured over the last decade, and have replaced the traditional "long only" equity portfolio. This has also given rise to the participation of borrowing and lending of equities. From a broker perspective the ability to execute a clever accumulation strategy over perhaps several months through being on both sides of the market in a stock usually results in a win win outcome for themselves and their client. Churning of stock and stacking the depth are typical strategies to force retail investors who have some alternate reason to sell, to hit the bid rather than wait in line.

I will not go on about this but I believe you are very naive if you think that no trading activities are done with carefully constructed strategies in mind.

regards
DF