LPS5: By auction market I mean that buyers/sellers buy and sell under the expectation that supply and demand are "the" primary influencing factors in equity pricing.
By merchandising I mean that pricing is generated less by supply and demand and more my manipulative actions.
If you don't believe manipulation of the markets exist, then that is your choice. I for one, cannot see how anyone that watches the day to day price action in stocks, could see it otherwise.
Richar Ney first opened my eyes to it back in the mid eighties. Not only has he written books about it, he use to appear on the old KWHY investment channel in the LA area. Every day for years he would come on and go through ticker tape print outs and show how it was done. (You don’t have to actually see a skunk spray to know it did.)
I began to look at more than just the ticker. I began to pay attention to price movement in relation to volume, price action patterns coupled with volume and price/volume cycles as well. I discovered just like a prizefighter even with all the bobs and weaves and faints, one could often detect that a real punch was coming, telegraphed if you will.
I began to ask myself what other factors might come into play that would encourage those that could manipulate on a higher level to do so and when. I was surprised at what I discovered!
Now some will say all is fair in business and war, to that I say BS. However I do concede, one has to learn to deal with it if one is going to trade/invest in the markets...
Regards,
LG
PS: The advent of level II access for individual investor brought forward a great tool, but also opened another door for manipulation and created yet another level of manipulation. Now even individual investors can manipulate by spoofing on ECNs. Spoofing, what a cute little word for putting out fraudulent bids and ask. Of course, the governing bodies are pursuing spoofing. Manipulations is not for the individual investor, that is the domain of the "family"...LOL |
