Denninger on Market Manipulation

In the following video, Karl Denninger points out large contract bids on the /ES that appear only momentarily and are pulled very quickly prior to execution. This pulls the price towards the large number of bids (or asks) and is indeed a blatant example of market manipulation.

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This is obviously done by computer and cannot possibly be executed by retail investors or those without direct access to the exchanges via a high frequency trading platform. Karl calls on the SEC, but they are obviously MIA. The only question is my mind is why? To me, the real game that’s being played is not on the market, but on the American public because I believe these games are known and possibly even sanctioned by our government – I wouldn’t even venture a guess at motivation be it greed or some other form of twisted and deluded “save America” reasoning.

The bottom line is that you need to be aware that the “markets” you are investing in are not really free markets at all. Thus I would not recommend that you regard them as functioning at this time and you should take action to protect yourself.

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About Nathan A. Martin 121 Articles

Nathan A. Martin is President of Wingman Investments, LLC, and author of the book Flight to Financial Freedom – Fasten Your Finances. He sees people, both young and old, facing a new era where they are forced to be responsible for their own financial success or failure. His message is clear; become financially literate or be a victim of the external forces that are impacting everyone. Nathan possesses an undergraduate degree in Professional Aviation and Business as well as a Master’s degree in Aviation Management and Operations.

A former Air Force and retired airline pilot, his flying took him the world over participating in many operations including the invasion of Panama, and combat time during Operation Desert Storm. Experience has come over 26 years of flight - logging more than 12,000 flight hours both civilian and military, and as the owner of a corporate aviation management company whose focus was aircraft efficiency.

Influenced by his parents entrepreneurial activities, Nathan began his business and investment training early in life and has used that knowledge every step along the way... from business school to his own corporations and personal investments.

Visit: Nathan's Economic Edge

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