Loading ...A lot was exposed in that Aladdin video I’ve posted several times. All it takes is a couple super computers like Aladdin from two or three different brokers and the wash trades take place so fast it kinda sidelines everything else. They can make hundreds or maybe thousands of buy/sell wash trades between themselves while we make just one, so it doesn’t really change anything if you or I occasionally get filled. For example, if 40 billion trades take place in two weeks in the DOW during trading hours, and only 3 or 4 Billion of them are legitimate filled trades, how fast would each illegitimate trade have to be? That makes 90% of the trades wash trades on the DOW and IMO that gives them the ability to make the markets “say” whatever they want them to say.
And we’re only talking about the DOW stocks. Add in the other indices, exchanges, sectors, and key stocks that can and IMHO are being manipulated and controlled by these super computers and you can see why volume is no longer a good indicator of market or individual stock direction…..if maybe 90% of the trades are wash trades. Not saying that they are but that was alluded to in that ALADDIN video FWIW! IMO lotsa good food for thought!
PS: Forgot to comment on how they make the wash trades disappear? I would say the super computers are programmed to periodically throw out all the unfilled wash trades??