Re: Gamestop?
Posted: Mon Feb 01, 2021 6:34 pm
@suomalainen
There's comes a point where the size of the trades, generated either by 10k retail investors or a single hedge fund, will send signals through the market. These signals have weight as they generate trading velocity. Currently some of the Wall Street Professionals (WSP) are upset at the disruption of Wall Street Bets (WSB) and are voicing concerns and recommending SEC oversight despite the fact both WSP and WSB affect the market in the same way. WSP doesn't like WSB betting against them. It's hypocritical to cry foul at WSB when WSP is equally putting the finger on the scale of the market.
So how does this play into the spirit of the law versus the letter of the law? Well market manipulation is a no no but WSP skirt this rule by saying they don't collude despite the fact that WSPs like to hang out with each other and have the computing power to make trades that would take thousand of individuals to achieve if human biology was the only resource. So while they aren't colluding to manipulate the market in the sense that the hedge funds are not conspiring with each other to criminally influence trades (supposedly ), the computing power they bring to the table is tantamount to tens of thousands of virtual brokers spread out all over the market tracking every trade and buying and selling in a collective manner.
see the following for reference:
There's comes a point where the size of the trades, generated either by 10k retail investors or a single hedge fund, will send signals through the market. These signals have weight as they generate trading velocity. Currently some of the Wall Street Professionals (WSP) are upset at the disruption of Wall Street Bets (WSB) and are voicing concerns and recommending SEC oversight despite the fact both WSP and WSB affect the market in the same way. WSP doesn't like WSB betting against them. It's hypocritical to cry foul at WSB when WSP is equally putting the finger on the scale of the market.
So how does this play into the spirit of the law versus the letter of the law? Well market manipulation is a no no but WSP skirt this rule by saying they don't collude despite the fact that WSPs like to hang out with each other and have the computing power to make trades that would take thousand of individuals to achieve if human biology was the only resource. So while they aren't colluding to manipulate the market in the sense that the hedge funds are not conspiring with each other to criminally influence trades (supposedly ), the computing power they bring to the table is tantamount to tens of thousands of virtual brokers spread out all over the market tracking every trade and buying and selling in a collective manner.
see the following for reference: