And apart from the overall low volume, cashed-up Galaxy's fall today of 2.74% is nearly double the fall of PLS (1.54%) and nearly broke AJM (1.59%). Galaxy's trading today showed all the signs of manipulation that are explained in the excellent "Dark Secret's of the ASX" video that is one of three videos available on
www.asxinsights.comThe three asxinsights.com videos are quite detailed and are in the form of PowerPoint presentations. Allow some quiet time to digest the information. The presentations provide transparency about how algorithmic trading has impacted the ASX market place. All information provided is backed by trends embedded in empirical ASX trading data. The presentation raises ASX systemic issues concerning algorithmic trading. The video features Kingsgate Consolidated (KCN), but as I noted in my earlier post ends with a list of 23 other companies that have been subjected to the same manipulation. Most of those other companies have been cheaply taken over and/or have been asset-stripped after being driven into administration. Galaxy is also on the list. In Galaxy's case though, it is too cashed-up to be driven into administration. Whilst a cheap-over could always be on the cards, I'd like to think GXY's board of directors which includes Peter Bacchus is too smart to allow that to happen.
The day's trading of course culminated in a 150,000 share sell-off after close of trading (that extra 20 minutes of trading each day in which retail traders are excluded) to ensure we finished at the day's low. Someone (Tutor?) is bound to tell me that this manipulation is a figment of my imagination, but I have followed this stock for long enough now to confidently say it is happening.
Anyway, I take some comfort in the fact that I have reported all of these manipulative practices to ASIC today. I am sure ASIC will no doubt be investigating the matter thoroughly. UBS and others who have been engaging in these algorithmic manipulation practices in contravention of Section 1041a of the Corporations Act are going to be in big trouble.
