manipulation rife on asx say researchers, page-14

Jo Jo
Thanks for your thought provoking post.

IMO almost all unwanted market volatility local and global is about the flow of hot money. I include HFT as hot money because it is only funny money parked in the market for 0.25 - 0.50 seconds, and therefore has absolutely zilch to do with actual placing of funds into investment classes.

Just as a hypothetical,imagine for a moment if the S&P 500 stood still for 6 months (flat lined). This would not harm investors in any way (and they might sleep better)but tens of thousands of bank/hedge fund traders would be thrown onto the dole, and again investors would not be harmed in any way. The missing trading margins, commissions were never going to investors or their pension funds, but to the shysters you are talking about.

What we have is the opposite: Angela speaks/market down, IMF speaks/market up, China PMI soft/market down, Yellen speaks/market down, Yellen speaks again/market up, Putin speaks/market down, unemployed down/market up, Glen Stevens speaks interest rates/market down. At the end of the day 99.9% of what is spoken turns out to be absolute rubbish. Could anyone seriously believe this see-saw chatter is just completely natural phenomena? - at every step hot insider money slips through exclusive channels and the shysters are clipping away, clipping away. Meanwhile trillions sit quietly in US bonds and why wouldn't they - protection of assets is far more important than getting the latest casino/hot fund return? The job of banks is to coax more money out onto the gaming field with whatever is the latest we can help you gimmick.

Only a time limitation can retard any of this - like to shift a hot 50 Mill into the AUS market, you leave it exposed there for 48 hours - Or go away!

Like to run HFT bids on the ASX, you leave them exposed there for 10 minutes - Or go away!