Fri, Apr 18, 2014, 9:53 AM EDT - U.S. Markets closed for Good Friday

Recent

% | $
Quotes you view appear here for quick access.

Silver Wheaton Corp. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • ltvalue ltvalue Nov 17, 2010 1:05 PM Flag

    CME's Criminally-Timed Silver Margin Increase-They Pulled Out Every Dirty Trick

    Alas, it is a well known and timeless feature of the markets that trading firms, pools, and even individual traders can push a security up or down in such a way as to induce others to join in or reinforce the move to such an extent that the original mover(s) can get out of their positions at a profit (or smaller loss) even as the price move continues.

    Before the 1929 crash this was common and accepted practice and newspapers used to comment on it and tell their readers how to profit from these manipulations. After the SEC was formed in the depression the practice had to go underground as it was made illegal. It still goes on to this day, the methods are usually just more subtle or come into existance when loopholes are found in the existing laws.

    The current flavor of the month legal method of manipulating the price of securities is High Frequency Trading. The fact that it accounts for roughly 70% of daily trading on the stock exchanges speaks volumes about how nothing changes but the changes.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Old Joe Kennedy was one of the biggest manipulators. He had agents in every major city that would buy or sell on Q from different accounts.

    • "Alas, it is a well known and timeless feature of the markets that trading firms, pools, and even individual traders can push a security up or down in such a way as to induce others to join in or reinforce the move to such an extent that the original mover(s) can get out of their positions at a profit (or smaller loss) even as the price move continues.

      Before the 1929 crash this was common and accepted practice and newspapers used to comment on it and tell their readers how to profit from these manipulations. After the SEC was formed in the depression the practice had to go underground as it was made illegal. It still goes on to this day, the methods are usually just more subtle or come into existance when loopholes are found in the existing laws."

      The "Bucket Shops" of the late 19th century through the roaring twenties were notorious for this behavior but their customers operated on 100% margin in effect. Bucket shops didn't even execute the order. They put it in a bucket and settled up with the customer at the end of the day. The abuses were rampant and great fortunes were made and lost (read "Reminescences of a Stock Operator"). In the 1980's there were such penny stock operators as Blinder Robinson out of Denver trading in penny mining and oil stocks. The manipulation in these was rampant as well. No one doubts there are sharp elbows being thrown in the options markets but it isn't as blatant and as "manipulative" as it's routinely described on these precious metal message boards. In my opinion it's a bunch of Johnny one-notes who don't have a clue what they are talking about...and once again...I'm long the metals...I would guess as long as anyone on this board. When I sell, it's 10% at most of a position. I'm just trimming a big position in silver and gold in hopes of buying it back at a cheaper price, not dumping it, and certainly no dumping on it.

 
SLW
21.87-0.22(-1.00%)Apr 17 4:02 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Weibo Corporation
NasdaqGSThu, Apr 17, 2014 4:00 PM EDT
Triangle Petroleum Corporation
NYSE MKTThu, Apr 17, 2014 4:01 PM EDT