SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Free Float Trading/ Portfolio Development/ Index Stategies
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: dvdw©2/15/2007 6:27:39 PM
of 3821
 
When there is a persistent failure to locate inventory at sale, than the system is running a bucket shop. Many days its simply convenient for a house player to drop a few hundred shares at a close which subtracts some % from a low priced stock. This facilitates on any given day the cap and control algorithm to meeting its range goal for a particular account.

Lets remember if the trade sold you something at say 1.45 and nine months later its at .98 and during the intervening period volume had virtually disappeared against the prior nine months moving average of volume. Chances are they never located your stock at 1.45, and had every intention of locating it near 1. But there intent is dependent on your capitulation to allow this churn to play out.

This is the game a market of disconnected supply and demand plays. Often we think that there are just too many naked shorts, but IMO the biggest problem is failure to locate at purchase the shares the bucket shop was supposed to buy on your execution.

Together these elements account for the gravest amount of misappropriation of shareholder money in the trade. Apparently the SEC never raised the question to the exchanges about these failures to locate, because within present system environs, its the broker dealers who Never get the orders to any exchange in the first place, so the outcome remains that the buyer gets defrauded simply on the arbitrary and capricious whim of some bucket shop trading department.

Only Supply and demand can restore system credibility. But what are the odds of that? With so many "big mouths" to feed; there is virtually no one watching the sleight of hand that occurs daily. The trough is a crowded place....reservations only.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News