Just another Reality-based bubble in the foam of the multiverse.

Thursday, October 30, 2008

But that would be illegal

They Made a Killing: The Use of Knowledge of Covert Operations in the Stock Market


It starts off with a link to a previous post:

...when do the fewest people make the most money in the shortest period of time?

During gaps.

A gap is a sudden, violent change in the price of a stock, future, bond, etc. Gaps are caused by some event that temporarily creates a state of disequilibrium in order flows. Gaps on stocks started to draw my attention because I just knew that insiders (and others) were pre-positioning themselves to profit from those moves.

I noticed that, quite regularly, unknown, crappy little companies would go up 25%, 50%, 100%, 200% or more in a single session. You see them almost every day on the top percent gainers board. For years, I looked at those and shrugged. “Yep. People hit the lotto too,” I’d say to myself.

I watched another one pop, then, finally, I thought: “This is the scene of a crime for sure.”

I’m not talking about legal insider trading by corporate officers that the financial press follows. I’m talking about the mistresses of executives and $2000 per hour prostitutes who heard something over pillow talk, friends at country clubs who get a tip during the golfcart ride to the 18th hole, industrial espionage operators (former spooks) who have these idiots under surveillance, low level IT staff who read the executives’ email, not for fun, but for profit, etc. etc.

The point is that LOTS of people who aren’t corporate insiders know the news before the market does. They buy before the news comes out. This happens every day...


...and it gets better.

But he fails to make the final link. Maybe Kevin just wants to avoid the Conspiracy Theorist label... not. More likely it's the sheer trollbait issue.

But I've made the link before, so I'll just do it again: 9-11 put options.

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