I'm an experienced trader, with many years of trading under my belt --- along with careful observation, analysis, research, study, etc.... I am completely conversant with all the various trading patterns which stocks exhibit; and I know what the trading action should look like on any given stock, under any given set of circumstances, assuming that stock is trading "naturally" (for lack of a better term).
Watching DECK very closely, all day today and yesterday, it was flagrantly obvious that the stock was NOT trading "naturally" --- it was being totally manipulated, all day long.
And DECK is certainly not a unique case --- over the past several years, flagrant manipulation of ever-larger numbers of stocks has been growing by leaps and bounds until, at this time, the ENTIRE MARKET is showing frequent evidence of being manipulated.
Is this some lunatic-fringe conspiracy-theory?
Nope --- just the facts.
Who, other than God Himself, could possibly be big enough to manipulate thousands of stocks, and even the entire market?!
Well, the hedge funds are big enough.
Current consensus estimates on the percentage of ALL trading represented by the hedge funds range from a LOW ESTIMATE of 55% to a HIGH ESTIMATE of 90%. Yes, market experts estimate that 55% - 90% of ALL trading on the U.S. stock market is hedge funds.
Any way you cut it, THE (perhaps vast) MAJORITY OF ALL TRADING YOU SEE EVERY DAY --- the majority of the buying, the majority of the selling --- is HEGDGE FUNDS, buying and selling strategically to create illusions of activity that will induce buyers and sellers to make decisions that will transfer wealth into the hands of the hedgies.
Technical analysis, fundamental analysis, vast amounts of research and preparation, the utilization of all one's intelligence and experience, ALL ARE COMPLETELY WORTHLESS now. The vast majority of stocks --- indeed, the entire market --- simply do whatever the hedgies want them to do.
You may as well spend NO time in preparation; just flip a coin, and hope your decision puts you on the same side as the hedgies.
How did the hedge funds, in just a few years, become so wealthy and powerful that they are able to manipulate the entire market?
It's simple: MASSIVE NAKED SHORTING --- which is unlimited counterfeiting of stocks. They simply create an unlimited number of shares of any stock --- out of thin air --- and sell them. They sell them to me, they sell them to you, they sell them to everybody ---- and we all exchange real money for these counterfeit stocks.
And nobody is doing anything about it. Regulation SHO --- the most laughably half-hearted effort to APPEAR as if the government is doing something about it --- is a complete and total joke. A travesty, really --- especially since the naked shorting escalated dramatically, immediately after Regulation SHO "went into effect".
Just think, if you could print $6 Billion A DAY in counterfeit money, knowing that you absolutely would not EVER be called to account for it, wouldn't you do it? And wouldn't you exchange that counterfeit money ($6 Billion per day) for $6 Billion worth of goods and services? Every day? And wouldn't you pretty soon be so wealthy and powerful, that NOBODY WOULD DARE STAND IN YOUR WAY?
And in the process, wouldn't your actions be wrecking the lives of alot of people, and eventually wouldn't the entire economy be wrecked?
That is what the hedge funds have been doing, unconstrained in any way, whatsoever, for quite some time now. $6 Billion per day of counterfeit stocks.
In the process, THE HEDGE FUNDS HAVE KILLED THE FREE MARKET.
These men should be dragged away, given a fair trial, sentenced to death, and executed in the most humanely gruesome way imaginable.
Hold on, there's someone at the door.....
Oh CRAP! THEY'RE HERE!!!! GOD HELP ME! Someone please call 911 and tell them to h
it gets better.. they've seem to have passed a blank rule to protect themselves from the obvious and eventual lawsuits.
DATE: MAY 16, 2005
TO: ALL PARTICIPANTS
ATTENTION: MANAGING PARTNER/OFFICER,
CHIEF EXECUTIVE OFFICER
CHIEF OPERATIONS OFFICER
SUBJECT: RULE FILING APPROVAL � SR-NSCC-2004-09
On December 8, 2004, National Securities Clearing Corporation ("NSCC" or �the Corporation�) filed
and on May 9, 2005 the Securities and Exchange Commission ("SEC") approved rule filing SRNSCC-
2004-09, which consists of modifications to NSCC�s Rules and Procedures (the �Rules�) to
memorialize the Corporation�s current standard of care and limitation of liability.
The approved changes create a uniform standard limiting NSCC�s liability to direct losses caused by
NSCC�s gross negligence, willful misconduct, or violation of Federal securities laws for which there is
a private right of action. In addition, the changes: (a) memorialize an appropriate commercial
standard of care that will protect NSCC from undue liability; (b) permit the resources of NSCC to be
appropriately utilized for promoting the accurate clearance and settlement of securities; and (c) are
consistent with similar rules adopted by other self-regulatory organizations and approved by the
Questions regarding SR-NSCC-2004-09 should be directed to Allison Finnegan, Senior Associate
Counsel, at (212) 855-3283, or to the undersigned at (212) 855-3203.
Karen L. Saperstein
Managing Director and General Counsel
This realization is hitting investor after investor. Grassroots investor advocacy groups are springing up.
Here is a list of sites that will start you on a trip of learning about naked shorting. These are linked to other sites.
I returned from a shareholder meeting yesterday. There I met a long-time broker who was embarrassed to tell the rest of us what he did for a living because of the crookedness of the system. He said that two years ago, he would have said that naked shorting was impossible because it was illegal. With the publishing daily of the SHO list, we know that it being illegal isn't stopping the criminals from doing it. And the SEC is perpetuating it with non-enforcement of laws and and the DTCC is profiteering from counterfeiting of shares.
You can follow the short interest in a stock, but you don't know what it is because of the ability of the marketmakers to short without disclosure.
"Current consensus estimates on the percentage of ALL trading represented by the hedge funds range from a LOW ESTIMATE of 55% to a HIGH ESTIMATE of 90%. Yes, market experts estimate that 55% - 90% of ALL trading on the U.S. stock market is hedge funds."
Got a source for this? While I'm not one to totally discount the general thrust of your complaints, this estimate seems very high to me.
Great post. I've been saying the same thing for a week, but you said it much more eloquently. There is no question DECK has not been trading "naturally". Anybody who watches level 2 for any amount of time can easily see this. Anyone who denies this is either blind or foolish.
I agree with everything you said about hedge funds. They control the markets and no one knows it. Potentially, they could cause major havoc with the entire financial system as we know it. In fact, it may already be happening.
It may be enough to make me consider getting out of the market entirely.
I totally agree. I wonder what it will take before Spitzer or somebody steps in.
No amount of DD will do anybody any good these days when at the mercy of unregulated hedge funds. It's unfortunate how they've ruined a good thing. I for one am on the verge of getting out of the market for good after 20 years. The last 5 have have been a disaster, good stocks all eventually taken out at the knees for no apparent reason. In this day and age EVERY stock will eventually get hammered, one by one. Naked shorting is most likely the main culprit. If you have noticed for a stock to go through what DECK is going through there are very....very few shorts on this board spewing their usual dribble. This thing is an institutional thing with 95% owned by institutions.
On the other hand..Management has not done us any favors here either, by both blowing the earnings call, and then the silence afterward as the stock has gotten trashed. I can only suspect they're not coming out to reaffirm because it'll be used against them in the eventual lawsuits that inevitably will come.
Otto sold 100,000 shares just prior to earnings, he should take those proceeds and publicly plow them right back into the stock as a show of support. I think everyone on this board should e-mail the company demanding he do that. Take the ass kicking that the rest of us had to take due to his incompetence.