One Chart: Stock Market is Rigged

The stock market is completely rigged! The Dow, S&P 500 and NASDAQ are completely different sets of stocks. In a truly free market where stocks are traded on fundamentals, there will be absolutely no correlation between these three. But in our rigged world, they move like synchronous swimming competition in the Olympics. Here is a chart from today:

Stock Market -3

Can this be a one-time rigging? Here are two charts – performances of these indices for the last 3 months and 5 years – that should put that optimism to rest:

stock market rigged -4

 

stock market rigged -2

Good luck to those people who keep investing, especially long term in 401K, IRA etc. You are just handing over your money to the crooks!

7 comments

  1. Interesting thought, but consider that each index is made up of multiple companies in a broad range of sectors and that their movements are more indicative of the health of the economy as a whole (that is until recently when stocks became divorced from reality). Is there a bit of rigging/manipulation? Sure there is. But to say that the entire system is meant simply to transfer wealth to the already wealthy just doesn’t hold water. The retirement accounts of hundreds of millions of people rely on the equities and bond markets, and many people have been able to successfully retire on those investment gains.

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    1. The stocks in those three indices are very different, especially if you consider the most weighted stocks. For example, the top ones in S&P 500 are FANG (Facebook, Amazon, Netflix, Google) tech stocks; while Dow has Goldman Sachs, 3M, Boeing, Home Depot and McDonald.

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      1. I get that each contain different stocks in mostly different industries. But what I’m saying is that just because they move in correlation to each other doesn’t necessarily mean the market is completely rigged. When you take a broad section of any industry, it’s price moves are going to be very in sync with the economy as a whole. Look at when the 2008 downturn happened, everything suffered because a global contraction in credit so a lot of stocks and equities and commodities lost a lot of their value for that reason alone.

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      2. When there is a huge swing, obviously all indices swing in the same direction. But when you see precise correlation day in and day out where every up-tick and down-tick are matched, you know what’s happening.

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  2. From my take, it seems that they have an algorithm that essentially creates fake trades to make it seem like a stock is doing more than it does, any large trades are done in the real market which are dark pools(invented by Bezos when he worked at DE Shaw). The fake volume covers up what really happens. What really happens is that any time someone comes in with any significant trade the algorithm plays the opposite direction. This guarantees an automatic loss. The truth is that the algorithm, AI based, is much smarter. It manages everything so that it maximizes loss for the “investors” and maximizes profits for the mafia that runs the rigged game. It’s able to calculate the optimal strategy 99.999% of the time. It works on many scales long term and short term and knows what drives most people. It has data on every single traders habits so it can take it into account. Even if it loses some money here and there it is doing it with a higher purpose and the mafia can print up any amount of $ to cover itself. The algorithm can also drive sentiment, news, etc.

    The algorithm is not perfect, but you cannot make any serious money in the fraud market. E.g., no matter how well you can time things at best you will get lucky once or twice. E.g., even if you see that a stock is at an ATL yet is pushing out good news(potentially lies or truth) it won’t matter because if you plop down serious $$$ they will just bankrupt the company to steal your money. Whatever it takes. Since there is zero regulation and accountability there is no way to invest in any legitimate way. Whatever you do, long term, they will pick a losing strategy for you and there is zero you can do. Sure, some people will get very lucky and make some decent $$$ because the algorithm is too busy stealing someone else’s bigger pot. If they walk away then they win. But the idea that the fraud market is about investing in companies long term is a 100% a lie to bring in naive people. The stock market is like any casino except it’s far more rigged. I guess it’s easier on their conscience to steal from people they don’t have to look in the face.

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