How does one recognize manipulation?
On the charts.
After eyeballing many many charts, one gets a feel for it.
Manipulated strike-points become pivot points.
It’s a push from a fund-heavy conglomerate. Push becomes a cascade as traders join in.
After the spike, the market-maker pulls out funds so cleverly that rates don’t fall.
Funds are now ready for the next push. The same funds.
Repeat. Same loop.
Till strategy fails.
Then, maker starts manipulating in opposite direction.
Life’s busy for the maker.
There’s trouble with the authorities. Ends on a compromise. Maker will step in when authorities need to prop the market.
No maker – no market.
Why do you think there’s always a quote to your underlying?
Because of the maker.
After a market has crossed critical mass, makers sit on their spikes. They roll-over on expiries, and enjoy the ride.
Ride is not always smooth.
Makers often get greedy and break their own rules. Functioning with no safeties, many makers get wiped out. To add to their woes, a large percentage functions on borrowed money.
Makers have an electronic life, which loops from cellphone to terminal and back. It’s a life that’s punctuated by headaches, physical and mental.
Don’t envy a maker.
He or she is just doing his or her job. That’s all.
Trade the maker.