After digging around and sifting through the things both said and not said, I have come to the conclusion that what we are seeing are the likely effects of a rescue operation.
By this I mean a large injection of stabilizing cash to one or more parties, possibly related to the recent large bankruptcies. Two of my friends, who have been actively trading for more than 20 years between them, threw in the towel this week, as their patterns and methods are no longer working.
Their conclusion is the same as mine; this market is not trading like it used to. It is trading chaotically, counterintuitively, and as if there’s some sort of distorting influence involved.
First, we might just wonder if this isn’t the impact of a rogue firm with entirely too much power moving the market for its own benefit.
When we examine the results of Goldman’s latest quarterly trading results, obviously we have a strong suspect.
Goldman Benefits from Trading Bonanza
Traders at Goldman Sachs recorded only one daily loss in the third quarter, highlighting the trading bonanza sweeping Wall Street as central banks continue to pump billions of dollars into the financial system.
The performance – revealed on Wednesday in a regulatory filing – compares with two losing trading days in the previous quarter and confirms that the authorities’ drive to revive markets after the crisis is yielding huge windfalls for some banks.
Before the crisis, banks regularly recorded trading losses on several days in a quarter.
Goldman made more than $100m in profits on 36 of the 65 days in the three months to September and recorded more than $50m in profit on more than eight out of 10 trading days, the filing shows.
by former_user