Seeking Alpha
  • David White
    If any of the major brokerage analysts upgrade AMZN in any way after its Q3 report, I'll file a complaint for market manipulation with SEC.
    10/26/12
    Reply (32)
    • David White: There is really no legitimate reason for upgrading AMZN (even price targets) after its Q3 report. The only logical reason would be to help
      10/26/12
    • David White: the brokerages use HFT and momentum trades to effectively steal money from retail investors. i will try to pressure the SEC into doing
      10/26/12
    • David White: something about what I consider to be effectively criminal activity.
      10/26/12
    • David White: If you wonder how it can be bad for HFT to push a stock up, consider that HFT only owns a stock for a very short period, usually only msecs.
      10/27/12
    • David White: A retail investor (or a fund) will end up owning a stock at the end of the day. HFT will have made more than normal profits as a stock most
      10/27/12
    • David White: people would expect to go down after a poor performance gets short squeezed upward. This is through perhaps millions of transactions during
      10/27/12
    • David White: the day. HFT will effectively have front run the short squeeze for several times its normal level of profits as short squeezes move up
      10/27/12
    • David White: quickly. The HFT traders will be out at the end of the day. Eventually an overpriced stock will fall. The "real" investors take the losses.
      10/27/12
    • David White: If a brokerage effectively sets the stage for a short squeeze by giving a completely undeserved upgrade, this is market manipulation. If HFT
      10/27/12
    • David White: effectively front runs the already illegally arranged short squeeze, this should be viewed as conspiracy under the RICO act, even if the
      10/27/12
    • David White: the analyst giving the inappropriate upgrade does not talk to the HFT trader(s). Everyone knows what is going to happen.
      10/27/12
    • David White: The brokerage's HFT is profiting immensely. The retail investor is getting fleeced. I might add that I think that many of the HFT algorithms
      10/27/12
    • David White: used today are illegal under the trading rules the slower human traders have to abide by. I think the SEC needs to address this, and it
      10/27/12
    • David White: has not. However, in egregious cases such as the possible one I have described above, the SEC and/or the Justice Dept. should act to
      10/27/12
    • David White: protect the human investors from what would then really be a criminal conspiracy to take money from them. For example, NFLX was a stock
      10/27/12
    • David White: that was pushed up by HFT and analysts recommending based solely on the movement it had already made (momentum). A lot of people
      10/27/12
    • David White: lost a lot of money on that stock. Even some knowledgeable pros like Whitney Tilson lost money on it. What chance does the general public
      10/27/12
    • David White: have against what amounts to a criminal conspiracy by folks who essentially control the exchanges. NFLX fell from about $300 to about $100
      10/27/12
    • David White: in almost no time. It now is closer to $50. NFLX should never have risen to $300. The fundamentals called for a much lower valuation.
      10/27/12
    • David White: Everyone knew competition was coming. Everyone knew NFLX's expenses for films were going up dramatically. Yet analysts still kept raising
      10/27/12
    • David White: their ratings on the stock. Brokerages made a ton on HFT on that stock through short squeezes after the completely inappropriate ratings
      10/27/12
    • David White: raises. This is really robbing the real investors. Plus it is robbing the equities market of its function by scaring real investors away.
      10/27/12
    • David White: When a stock you own one day is worth one sixth of its price sixth months later, you get scared to invest. You no longer believe there is
      10/27/12
    • David White: any rational reason(s) that will support a stock's price. When the major brokerages have been telling you how great the stock is immediately
      10/27/12
    • David White: prior to the dramatic fall, you no longer have any faith in them; and perhaps you should not. However, the real investor deserves to be able
      10/27/12
    • David White: to have at least a modicum of faith. I believe the current laws specify that. I don't believe the SEC is enforcing even the existing laws
      10/27/12
    • David White: effectively against HFT.
      10/27/12
    • 1980XLS-2.0: Buy, Buy ,buy!
      10/27/12
    • callseller: I saw this on some website. Amazon.com tgt raised to $264 at Oppenheimer following earnings.
      10/27/12
    • David White: callseller: Thanks for the info. I didn't see that one. What I am really looking for is a major brokerage though (or an onslaught of raises)
      10/27/12
    • David White: Please let me know if you see any more. The ones before the AMZN report don't count because they can legitimately say they didn't know the
      10/27/12
    • David White: results when they wrote their upgrades.
      10/27/12