InvestorsHub Logo

mcsharkey

08/30/15 1:00 PM

#36925 RE: stocktrademan #36924

DARKSIDE IS FRONT RUNNING US AGAIN:).

Actually, not a lot of evidence for that, however, history sort of repeats itself. Some news broke. Last time stockmantrademan posted here was on the Saturday after a big surge at the close on Friday.

When Electronic traders were made aware we were moving to the Russell MicroCap Index on Monday. None of us free-basing retailers (I mean free-site accessors) had a clue. AND, today, we are missing the clue on what's going to happen Monday.

Sorry, too late to get change on image. PPS graphic on right is this Friday's close. Not July's when the post was made.

For a roll down memory lane, back to the WTF? is going on with late Friday surge, here's a <Link to the last time we had this auto-generated STOCK MAN alert >.

Not the same action in after hour trading this time. And,
Interactive Brokers is still hanging low @ 25K shares, we got that low on Friday around lunch. Nothing changed since.

INFO ONLY. Down after this preliminary BS of mine. Sticking with my SHORT STRADDLE distopian short cover for Friday's last second rise:). Something bigger may be brewing with stocktrademan showing up. This is the FRONT RUNNING gambit I think went down over the weekend we went to the Russel.

The Hugely Profitable, Wholly Legal Way to Game the Stock Market
by Yuji Nakamura July 7, 2015 — 12:00 AM EDT

<Link to Full Article>It’s an easy way to game the stock market, and getting easier by the day.

With some deft maneuvers, hedge funds and Wall Street trading desks are reaping hundreds of millions at the expense of index mutual funds, the investments of choice for a growing number of ordinary Americans.The tactic, in some ways, resembles illegal front-running - - but in this case, it’s perfectly fine.

The traders are simply buying stocks before they’re added to the indexes that, by definition, index funds must track. As the popularity of index investing soars to new heights, the emergence of index front-running is raising fundamental questions about so-called passive investment strategies, as well as how indexes
are compiled and the role the funds themselves play in elevating costs.

By one estimate, it gouges owners of funds tracking the Standard & Poor’s 500 Index to the tune of $4.3 billion a year, a sum that can double or even triple the cost of such investments.

“Portfolio managers are aware of it, but some of them will say ‘My clients demand an index fund, and I’m going to give it to them come hell or high water,’”
And we'll see how much shit hits our fan, or lands on our mess kit in the morning.
GLTA
Mike