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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Voltaire who wrote (26801)	12/21/2000 6:55:06 PM
From: Sully-	Read Replies (1) \| Respond to of 65232

Hi Tom, I've been giving some thought to this manipulation by the houses stuff that has been one of the focal points of your detractors (not you JWCB, although you have taken an opposing position on manipulation of late)...... perception is reality.... regardless of the facts..... if you can change the perceptions of a significant portion of investors....... That is what it comes down to, IMVHO. Anyway, my POV is that there may not be open collusion between the houses.... but I don't doubt there are a certain amount of nods & winks between them..... Manipulating perceptions is an unfortunate reality..... I do believe that the explosive growth of the net, online discount trading, pre & after hours trading & improved access to all of this has taken some control from the way the houses have done their business (IE, manipulation or whatever term one chooses). The ability to out maneuver the individual investor has been seriously reduced due to this. Now we have Reg FD about disclosure that has reduced their inside track even more. I submit that these massive changes have forced the houses to change their tactics, but manipulation is still an important part of their package. IMO, the houses have no desire to lose the control they had. No one willingly abandons a productive gold mine. Molding perceptions to exaggerate the emotional response to greed & fear has been a long term productive gold mine for the houses IMVHO. I believe the houses need to protect their inventories from time to time..... but more so, churning their full service investors remains a valuable part of the franchise. It is not in their interests to have an ever growing % of LTB&H accounts while losing an ever growing % of investors to discounted online accounts. Churning is too profitable not to be exploited for the benefit of the houses. They want you to trade as often as possible PERIOD. Exaggerating perceptions will add to the emotional response of greed & fear, resulting in more people trading.... often at the wrong time. Dress it up any way you wish, but when analysts regularly include the following in their analysis; overstating hard facts, misrepresenting others & completely ignoring some facts to spin a projected outcome that exaggerates positive or negative perceptions spread by the houses is still common. Piling on with FUD is still common. Upgrades at/near a top & downgrades near a bottom are still common..... meanwhile they are often selling into the upgrades & buying the downgrades. Look at tactics by bashers on SI, Yahoo, etc. Look at those who chose to denigrate others on these threads. The truth is the first thing that goes out the window. Exaggerations, half truths, intentional deceit, lies are common.... flat out ignoring ALL facts that are contrary to the perception they are trying to create is common. Bottom line, some folks will go to any means necessary to change perceptions. The houses are run by people with overall morals & ethics similar to those from the general population on these threads. Perhaps the houses tend to employ folks with morals & ethics that suits corporate needs..... perhaps not. This is reality folks. Some people have no problem with crossing moral & ethical lines in order to achieve their goal. When money is on the line the temptations are even greater. It is an effective tool to play on the natural greed & fear that is so primal in humans. I have to conclude that this is one effective tool to benefit the houses. Understanding the psychology behind this is one of the tools that could improve your success. BWTFDIK anyway?? Ö¿Ö Tim@rambleoff.com