As described by Nanex LLC's Eric Scott Hunsader,
Retail stop orders await execution, typically at common price intervals (0.00, 0.25, 0.50) at the Wholesaler. Wholesalers know those price levels and can anticipate and exacerbate the downside movement to increase net profits.
How?
Wholesalers create a composite view of the Order Book (Bid/Offer at each Price Level) across all exchanges.
Submitted by David Stockman via Contra Corner blog,
On December 28 we laid out the reason why the Wall Street casino should be avoided at all hazards in a post entitled “Safe On the Sidelines - 405 Days And Counting.” We referred to the fact that the S&P 500 had first crossed that day’s close at 2052 in November 2014, and had vibrated sideways ever since.
We are still counting. After this week’s carnage the number has risen to 501 days, but our belief that the stock market casino has just begun its descent has only been further reinforced.
1000 points of Dow swings, VIX manipulations, and desperate talking heads, and still red...
On the day, Nasdaq was red, S&P unch, Small Caps green...
Earlier we showed why, one day after JPM said that "the regime of buying the dips might be over and selling any rallies might be the new one", another major bank, this time Citigroup, said that after six years of outperformance, "fading EPS momentum and rising Fed funds mean that... we cut the US to Underweight."
Everyone knows the world's foremost Wall Street meteorologist, and sometime Deutsche Bank economist, Joe LaVorgna.
For those who are unfamiliar, Joe is the person who in 2014 blamed every. single. negative. data point on the weather.
Joe is also the economist who famously lost a forecasting face-off with Groundhog Phil.
But most notably, Joe is Wall Street's biggest permabull.
Or was.