The great scam market
I posted a similar Topic in a couple of other subs yesterday but Mods were quickly removing them on the basis that the question was too " subjective "
Anyway I've been working on a theory for a few years now that the markets have very very little to do with actual company performance or metrics and everything to do about Mass perception and psychology
Almost every day now I see a trader trying to analyse a stock based on a Shiller ratio or a Buffet Indicator or pattern whatever ...
Are we really going to kid ourselves the markets are trading on these metrics anymore !?! if so how do we explain Big Tech ? most of the valuations defy every piece of logical or rational explanation
A share price can move more on 4 lines of text from an individual on a social media site than on a full quarters earnings report
Then allow me to move into day trading which is perhaps the most manipulated aspect of the entire show , we've known since the dawn of time Tutes and Hedges have the upper hand but now I believe with A.I trading algorithms thats been taken to a level whereby there's literal fraud happening on a daily basis
If you think this is crazy conspiracy level stuff try researching algorithmic and cryptographic trading signals
These theories and technology's speculate that these trading Algos can now actually communicate between each other via a certain price signal and then work together to shift the market higher or lower
You can't beat this , yea you can get lucky and maybe be on the right side of the coin when it happens but generally over a sustained period these are cleverly programmed to bleed day traders out and to often go against Mass assumption
This explains the very odd situation whereby sometimes a company gets bad news the stock actually ends up trading higher and vice versa. This is a strange Phenomenon most traders can never explain or comprehend so its often passed of as " oh markets just being irrational"
No that's a lie its being done intentionally to Fvck the opposite positions
Tesla is a fantastic example of everything I've talked about above really the daily and weekly price movement needs to investigated by the SEC for securities fraud ( it won't) but I believe a deep forensic analysis would uncover a body of manipulation and fraud
Long term we all know the overall stock market will keep going higher and higher forever which I guess means locking capital in for 40 years into ETF's makes the most sense , but again the big boys know dam well Retail gets impatient and wants faster gain and will try to make daily / weekly or monthly trades
( more market phsychology )
Theres a lot of FOMO out there now too which further exacerbates many traders need to get in on the action
This is exactly what Tutes/ Hedges and Banks want ......it's their bread and butter
Anyway looking forward to hearing others opinions , I'm not particularly interested in discussing if this is a conspiracy or not because frankly its brutally obvious a lot of this is happening in some context and you would be very very Naive to think otherwise
But maybe I have some angles or aspects wrong or maybe I've missed something somebody else wants to add