Why Investors Are Leaving The US Stock Market

Last May 2010 I wrote about the May 6th "flash crash" (here).  My belief continues to be that, "This was a premeditated demonstration of power over the market that was so sophisticated that it was unforeseeable and perhaps inconceivable upon which case the only possible response is capitulation to the victor."  The bullies were asked not to do this to the whole market all at once but to please just do it to "little pieces of it at time".  You see we need the bullies because they are providing liquidity to an otherwise desert dry (volume wise) stock market so we must let them extract their pound of flesh from retail investors, insitutions and pension funds.

On September 27, 2010, the target was Progress Energy and everyone stood by and watched.  No one will say anything. Here is the chart (in milliseconds) of what happened at 9:57 and 42 seconds AM.

Chart Courtesy of Tyler Durden

First: Please note the time stamp on the chart.  All of this happened during a millisecond slice of the 42nd second of the 57th minute after 9am.  

Second:  Anyone with stop loss orders got taken to the cleaners.  Their orders went to immediate execution.

Third:  Someone was buying at $4/share (down from $44/share) and had orders sitting there waiting to be executed.

Fourth: In the blink of an eye, the price returned to the $44/share mark.  Bagging a 1,000% gain.

This is the work of high frequency trading systems using quote stuffing techniques.  It happens everyday to somebody's stock.  And this is why nobody wants to play anymore.

Read and remember this: http://tedbits.blogspot.com/2009/07/united-states-district-court-southern.html

I think whatever this was, it slipped out into the hands of some very clever, now powerful people.  I hope they are only in it for the money.