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stockmktdouble (< 20)

INSIDER TRADING (AGAIN)

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April 11, 2013 – Comments (2) | RELATED TICKERS: C , JPM , GS



Fifth Third, Citigroup (NYSE:C), UBS, Barclays, U.S.Bank, Goldman Sachs (GS), Wells Fargo (WFC), HSBC, BNP Paribas, BB&T, JPMorgan Chase (JPM) and PNC all had information before the public had it today about what was going to be said by Fed at 2pm and they used that information to make profits in the stock market.  I think that is called insider trading.

Almost without fail, the market normally sells off prior to a statement from the Fed because nobody is ever 100% sure what the Fed is going to say.  Today however, the market spiked higher (significantly higher) before the release at 2pm. An obvious sign that these institutions knew in advance what the tone of the statement was going to be.

The problem here is are the people who got hurt by this.  It is logical, that some traders (who were not fortunate enough to have the Fed's minutes in advance) may have shorted the market before the Fed's 2pm statement and got walloped.(for sure this happened to some traders)

It's just another example of how uneven the playing field is and why it is so difficult for independent traders to succeed in this game. If you are succeeding, it is because you are exceptional and better than many of the guys sitting in the office's of any of these institutions.

Do you think the SEC will take any action here? Yea right! If you believe that they will, there are 3 bridges I'd like to sell you.

Good luck out there! You are swimming in are treacherous waters.

http://www.stockmarketdouble.com/2013/04/insider-trading-again.html

2 Comments – Post Your Own

#1) On April 11, 2013 at 10:22 AM, Option1307 (29.70) wrote:

Maybe I'm misunderstanding your article but I don't get this statement...

Today however, the market spiked higher (significantly higher) before the release at 2pm. An obvious sign that these institutions knew in advance what the tone of the statement was going to be.

How is it an obvious sign that these institutions, or any others, knew what the FED was going to say?

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#2) On April 11, 2013 at 8:23 PM, stockmktdouble (< 20) wrote:

Hi Option1307,

Because of the index's action prior to the statement at 2pm. There is almost always a sell off before the fed makes a statement because people dont know what they are going to say. Traders are generally very cautious before the fed says anything, especially anything to do with quantitative easing. so they sell before the announcement to limit potential losses-in this case they just kept buying

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