Deep Market

| 26 Comments

Market Watch;

One of the most popular measures of volatility is being manipulated, charges one individual who submitted a letter anonymously to the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The letter makes the claim to regulators that fake quotes for the S&P 500 index SPX, +0.26% are skewing levels of the Cboe Volatility Index VIX, -2.50% which reflects bearish and bullish options bets 30-days in the future on the S&P 500 to gauge implied stock-market volatility [...]

The whistleblower's claims are consistent with those documented by John Griffin, professor of finance at the University of Texas and Ph.D. candidate Amin Shams in May 2017 in research that says the cost of manipulating less-liquid SPX options would be more than paid for by a successful bet on the direction of the VIX. The paper is consistent with the whistleblower's conclusion--that manipulators are moving prices of the SPX options by spoofing at settlement--entering quotes for trades that are never executed--to "paint the tape" and, therefore, influence the value of expiring VIX derivatives.

Via Drudge.


26 Comments

Boss Soros anyone?

My thought also.

Soros, Steyer, Buffett, Bezos, Zuckerberg, Page, Schmidt, Cook, and many other Trump haters likely...

Koch bros.:-)))

Some of us may remember what happened in SE Asia about 20 years ago. The economies of several countries in the region were wrecked within months because of erratic markets and currency trading. All of that upheaval affected stock exchanges around the world.

The rumours that I've heard was that Soros was behind all that and profited handsomely from that. Meanwhile, countries such as Thailand were on the verge of going belly up.

Back then, few people heard of him and, if they did, he was usually portrayed as a "philanthropist". We, of course, now know that if he did indeed donate money, it was only to those parties or agencies who supported his ideology.

It's all good, Trump pardoned the banks...

http://www.alt-market.com/articles/3349-as-no-one-watched-trump-pardoned-5-megabanks-for-corruption-charges

As No One Watched, Trump Pardoned 5 Megabanks For Corruption Charges

Then in June 2017, Deutsche Bank trader David Liew, who is based in Singapore, pleaded guilty to conspiring to spoof gold, silver, platinum and palladium futures in federal court in Chicago, confirming that the biggest banks in the world have conspired to rig precious metals markets.

Palladium futures? Seriously? http://palladiumbooks.com/

If thought a fool, it is better to remain silent, rather than speak and remove all doubt.

The FLASH selloff jusssssssttt happened to coincide with Trump’s 1st SOTU Address. After a 8,000 point Dow increase since Trump’s election ... certain elements conspired to take the bloom off the rose. No matter ... every American (who works) knows full well what Trump has done for our economy. It’s all good.

stradOgay a fool, when did he upgrade??

It was perfect. What better sell signal could you have than an president dumb enough to tie himself to the stock markets talking up the stock markets? When dipshit Donnie is promoting it, time to dump it.

"The economies of several countries in the region were wrecked within months because of erratic markets and currency trading. All of that upheaval affected stock exchanges around the world.

The rumours that I've heard was that Soros was behind all that and profited handsomely from that"

The only thing Soros et alia were 'guilty' of was being smart and popping the bubble that resulted from the idiotic central bank policies rife across the region at the time. Blaming Soris is like blaming the scoreboard for telling you that your team is losing.

?

wtf are you people talking about palladium books?

palladium is a precious metal:
http://periodic.lanl.gov/46.shtml

and there is a commodities market for it:
http://www.cmegroup.com/trading/metals/precious/palladium.html

if someone here asserts the market is rigged and cites a source, do try not to resort to grade school insults.
take issue with the source instead. (it might actually work with a bigger audience).

whoooole BUNCH of citations here:
https://www.google.ca/search?rlz=1C1GCEA_enCA784CA784&ei=BJ2DWo3fIIikjwS3h6KYBw&q=trump+pardons+banks&oq=trump+pardons+banks&gs_l=psy-ab.3...8547.13648.0.15124.19.19.0.0.0.0.88.1274.19.19.0....0...1.1.64.psy-ab..0.15.1060...0j0i131k1j0i131i67k1j0i67k1j0i131i46k1j46i131k1.0.bFmJcscus6c

if Trump did this, it is SERIOUSLY disgusting.
(note how I do not immediately jump to his defense on cue based on sycophantic ideology)

mysteries of the universe . . . . . .

After a 8,000 point Dow increase since Trump’s election ...

Of which fully one third was Goldman Sachs...the administration being full of former Goldman Sachs people.

http://markets.businessinsider.com/news/stocks/Goldman-Sachs-is-responsible-for-a-massive-chunk-of-the-Trump-rally-GS-1001580753?op=1

Goldman Sachs is responsible for a massive chunk of the 'Trump rally' (GS)

Investors seem to be betting that the deregulation of the financial industry - Trump and his new Treasury Secretary Steven Mnuchin have talked about rolling back the Dodd-Frank Act passed after the financial crisis - and rising interest rates in the bond market could be a boon for Goldman.

Trump was sometimes critical of the bank prior to the election, even featuring Goldman CEO Lloyd Blankfein in an ad highlighting people that the candidate claimed did not have America's interests in mind. Blankfein came out after the ad in support of Hillary Clinton.

Trump has hired a number of Goldman Sachs alums in powerful administration positions, including Mnuchin, who was a Goldman banker for 17 years.

I posit the 2008 meltdown was the result of Democrat/progressive market manipulation (Soros and co.). McCain/Palin were making serious gains in the polls and it was decided that a market meltdown would help Obama. No one will ever convince me otherwise.

All I ever expect out of my fellow citizens is HONESTY. Since you have NONE, let me provide a little. Your “shocking” article about how Goldman Sachs was responsible for “a big chunk of the Trump rally on the stock market” ... is dated Dec. 9, 2016. Ha ha ha ha ha ! AYFfer Real? You toss out a garbage article written ONE-month into the 15-month 8,000 point Trump Market Rally ... as if that “proves” something. OMG. Do you actually believe your own bullshit? or is your TDS like masterbation ... you just can’t stop trying to make yourself feel good?

“That means that GS has provided 441 of the 1363 points that the Dow has rallied.”

OK ... I’ll play ... show me how many points Goldman Sachs has “provided” of the 8,000!!!! since Trump’s election. I’ll wait ...

Hahahaha ha. Ha ha ... EVERY ... investor in the Stock Market was LOVING the promised corporate and personal Tax Cuts which Trump delivered in spades. To go with his dismantling of regulations and the Federal chokehold on the Free Marketplace.

"...that Soros was behind all that and profited handsomely from that. Meanwhile, countries such as Thailand were on the verge of going belly up."

Didn't he almost break the Bank of England in the late 1980s or thereabouts.

the reason S korea weathered that one is the government pleaded with the citizens to sell their gold holdings in exchange for the nation's currency. I talked to a stereotype Korean variety store owner about it.

it worked. those wonderful ethical caring mutual supporting Koreans collectively saved their own arses.

well, except for some 'capitalist entrepreneurs' who exploited the situation for their OWN benefit. we can always count on those selfish go&^^$AMNED pryks to show up at every 'golden opportunity to make a fast buck' or whateverthefcuk korean currency is.

I'm outta here !! time to take the mastiff for a walk !! (did I tell you about the time I gave him a timeout in the shed and he DENTED the fcukin' steel doorknob with his teeth? aka 'daddy did something with that round thing . . . . .')

(did I tell you about the time I gave him a timeout in the shed and he DENTED the fcukin' steel doorknob with his teeth? aka 'daddy did something with that round thing . . . . .')

That sounds familiar. The last dachshund that my parents had did something similar.

The little guy and my father became quite close after my mother died. Whenever my father left the house, he'd close the door to the back landing. The dog tried to open that door by jumping to it, hoping, somehow, to turn the knob.

He never succeeded but he did manage, over the years, to scratch through the plaster board next to the door frame all the way down to the 2 x 4.

Have you ever read about how many democrats working for large banks Obama rewarded?

and did you know those large banks donated about 10 times more money to the democrats than republicans in the last 10 - 15 years?

I am not going to waste time digging for the links, the excerpts but I could provide all the evidence.

Large banks are way more connected to democrats than they are to Trump.

What ever Trump did with those banks it is crumbs compared to what Obama did.

Either you know this but pretend Trump is worse,

or like most liberals you get your information from the fake news media thus you know less than half the story.

Can it be that conspiracy theories about market movements is a easier mental process than not? Governments around the world have been creating money out of thin air for decades now. That has created a massive overvaluation in many assets and a horrendous global debt problem. IMHO the people who vote these irresponsible governments into power should shoulder and ultimately will, much of the blame. Do many people like Soros feed off this, yes, but they are the inevitable system.

When the inevitable debt bubble bursts the convenient excuses for the 'something for nothing' voters will once again assert themselves. It will not change the reality.

Case in point. General Electric who's stock has collapsed has a unfunded pension liability in excess of $32 billion. Corporate management can take a lot of blame (Obama loved GE management by the way) but one should also consider the demographic within that company. Many pensioners versus the existing workforce. GE cannot earn enough money to ever fund the shortfall. Like Sears who will? Ge is not unique corporately and people should take a leap and start looking at many government pension plans in the same context. It should scare everyone.

These guarantees(?) to the population will fail. Who will be mature enough to explain why.

Can it be that conspiracy theories about market movements is a easier mental process than not? Governments around the world have been creating money out of thin air for decades now. That has created a massive overvaluation in many assets and a horrendous global debt problem. IMHO the people who vote these irresponsible governments into power should shoulder and ultimately will, much of the blame. Do many people like Soros feed off this, yes, but they are the inevitable system.

When the inevitable debt bubble bursts the convenient excuses for the 'something for nothing' voters will once again assert themselves. It will not change the reality.

Case in point. General Electric who's stock has collapsed has a unfunded pension liability in excess of $32 billion. Corporate management can take a lot of blame (Obama loved GE management by the way) but one should also consider the demographic within that company. Many pensioners versus the existing workforce. GE cannot earn enough money to ever fund the shortfall. Like Sears who will? Ge is not unique corporately and people should take a leap and start looking at many government pension plans in the same context. It should scare everyone.

These guarantees(?) to the population will fail. Who will be mature enough to explain why.

If you actually read the articles, you'll find that he didn't "pardon banks". He extended an exemption that Obama had implemented. In the case of JPMC:
"The Applicant requests that the Department extend the term of the exemption from five years to nine years from the Conviction Date. The Applicant states that the five year term is inconsistent with precedent and “appears punitive.” The Applicant further states that “exemptions should reflect the underlying facts that necessitated the exemption [and] [h]ere, those facts are as follows: JPMC was convicted of a single crime, based solely on the misconduct of a single individual who was not employed by the Applicant's asset management businesses and who has been terminated by a firm that has dedicated and continues to dedicate significant resources to enhancing the relevant Start Printed Page 61817controls to prevent future instances of similar misconduct.”"
And the reason it's being extended is not to give the bank a break: "The Department is granting this exemption in order to ensure that Covered Plans [3] whose assets are managed by a JPMC Affiliated QPAM or JPMC Related QPAM may continue to benefit from the relief provided by PTE 84-14. "
Facts matter.

thanks pete, for your 'take" , strad is an idiot, and I didn't read the article, because I can't be bothered:-)))

"it worked. those wonderful ethical caring mutual supporting Koreans collectively saved their own arses.

well, except for some 'capitalist entrepreneurs' who exploited the situation for their OWN benefit. we can always count on those selfish go&^^$AMNED pryks to show up at every 'golden opportunity to make a fast buck' or whateverthefcuk korean currency is."

Yeah you show those Kulaks wreckers what's what comrade.

The link in the cited MarketWatch article to Griffin and Shams' paper does not work. He is a good link:

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2972979

Leave a comment

Archives

February 2018

Sun Mon Tue Wed Thu Fri Sat
        1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28      

Recent Comments

  • Jungle Jim: The link in the cited MarketWatch article to Griffin and read more
  • UnMe: "it worked. those wonderful ethical caring mutual supporting Koreans collectively read more
  • NME666: thanks pete, for your 'take" , strad is an idiot, read more
  • pete: If you actually read the articles, you'll find that he read more
  • CT: Can it be that conspiracy theories about market movements is read more
  • CT: Can it be that conspiracy theories about market movements is read more
  • Canadian Friend: Have you ever read about how many democrats working for read more
  • B A Deplorable Sewer Rat: (did I tell you about the time I gave him read more
  • historybuff: the reason S korea weathered that one is the government read more
  • Ken Deplorable (Kulak): "...that Soros was behind all that and profited handsomely from read more