Underwriters, CS, Institutions, HFTs, Markets and Retailers
This is an unmitigated disaster.
Looking at the IPO open, the climb to nearly $30, and a drop to $8/share and today's movement, what we have here is indicative of a market culture so deeply embedded in the TRANFERENCE of wealth from retailers to private equity and to institutions, a transference dependent on the MYTH of due diligence and TRUTH of PRICE MOVEMENT and the essential collusion and mutual agreement culture of money managers, prop desks of banks, and hedge funds. It is based on a RELIANCE on a different, more-extensive institutional time frame than that of retailers and traders. Institutions hedge, retailers essentially make one choice. Positions for retailers are unsustainable when under water for even a brief time, and the market requires RETAIL CAPITULATION. Linear movement in favor of the long retailers, ironically, even when retailers have advantageous entry points, will be missed because of the volatility through HFTs. It's mathematical, eternally cold, and it has NOTHING TO DO WITH SUPPLY AND DEMAND.
Market makers and underwriters - the very institutions who've brought the companies public with profitable fees and reduced premium blocks of shares to sell long or short - are the ones shorting it into a range of near armageddon. Regarding entry points, HFT Programs move the bid-ask away from Limit Orders and "at market" orders are filled at the highest possible range on buys and, for sales, are filled at the lowest price possible, as the price movement in micro-seconds is adjusted by these programs, representing the primary focus on margin profit on endless transactions requiring volatility, not direction or extended linear movement .
CS downgrading this stock - with numbers by the company that the market wasn't impressed with in terms of growth (despite the reality of a tough tough winter in the US) - takes the stock down 30% AFTER an extraordinary break down on the pps off of its highs, but today...(MORE)
If you read this thread from the day of the IPO you would find many posters who warned Fairway had no way of making it in the big league. Fairway was a private profitable New York market, that should have stayed private and grown at a slow pace. But wall street found away for the owners to cash in bigtime. Would not be surprised when it goes bankrupt that those who actually cashed in take it back and run it as a private company once again and maybe after some years bring it public once more. But this thread warned the public not to invest.
how do you make money in the stock market if you rely on split second marginal pricing - I like to have gains of say 5 % or 10% or 15 % or say 50% - yet 1/2 of 1/2 of 1/2 of one percent is not going to get the second home anyway - if we all know the big boys run the show - maybe just peek under the curtain and study the balance sheet