Who is making the lolly?

What I don't understend, is in this current climate, who is profitting?

OK, people go short. Not something I have really worked out yet - hell, at the moment I doubt my ability to go long!! (That will come in another post I am planning!). However, from what I understand, they cannot go shrt forever, so they will have to buy eventually. Some profit - yes, but not enough to give what really has been a crash (The Naz down 62% in 12 months - if thats not a crash, I am not sure what is!)

Ok - the institutions? Well, by sitting out, they are biding their time. However volume is not so reduced that their presence is missed. And they must also be sitting on losses too - not good for profits....

MM's. Well, they must be having a field day. However, Surely they work best on medium term cycles, accumulating stock on the cheap, and selling it back for more money - although they have to do it unpredictably, otherwise we would beat them at their own game. Some truth, yes, but surely they need a rally simply to stimulate interest, trade, and their profits. Surely for some equities, they must be sitting on a glut of stock that they just want to sell!

Who else is profitting from these conditions? Surely someone is, as money does not disappear, it simply streams ike a river. Who is the big player, and who is doing the manipulating? For knowing your enemy is the key to battle. I know we blame the MM's, but are they not simply the equivalent of the message boys, carrying the sentiment? Or am I being to generous.

Just who is making the lolly?

It most certainly isn't I!

Try checking one or two shares that have a small spread and are oscillating within a channel. e.g. ARM have been doing this recently but take care, that one appears to be narrowing. Look for small frequent profits.

I guess the institutions can short as well, leaving Joe Public to carrry all( most) of the losses. As far as I can see, the mm's don't care much what happens, so long as there is turnover, however it may be achieved.Tell institution XYZ to go short on ABC.- (results due) Results out, bomb the price- missed city forcast by 1%.. perfectly valid reason to bomb it!
Institution buys ABC.....
Ah! I see a bounce coming so Institution buys ABC, and slowly offloads into the market as the price bounces and all the suckers think "bargain price, I'll have some of that", and of course the offloading Institution supplies all the demand...
Fact or Fiction?
How did you guess that I'm Joe Public?

You're right, but you can't beat them.
Why not try this


i like you were wondering how the hell to make any money in this market. I find that spread betting with Finspreads is working for me. I started playing and learning with 1p a point and have slowly moved that up. I am currently shorting the DOW. Great fun and very profitable.
{cough} {ackk}

Who dusted off an 11 year old thread?
are we in a time warp?
I think Lehman Brothers is making all the money but I predict they'll go bust in about 10 years or so.