I guess it just seems like you're implying the two banks single-handedly can ruin the 98 retailers, when you're implying there's an entire other third party that will also be responsible, so the sinister example seems flawed.
its very simplistic model, but ultimately the most solvent players(banks) can goose counter party positions to blow them out. The third party is the never ending fool theory, the market has a constant supply of entrants.
But the market does have a limited supply of liquidity. And ponzi schemes always collapse because they run out of new entrants.
there is new 401k rule by Apr 2017, will basically force the fiduciary to be constantly invested in the market. The rules are being changed to basically force the sheeple to provide a constant supply of timed liquidity every year. https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pages/fiduciary-rule-plan-sponsors.aspx even though it is meant to decrease conflict of interest, it basically forces the fiduciary to be constantly invested in derivatives of one form or another. The fiduciary can not keep funds in money markets for extended period of time/cash. From what a advisor has told me, they can be sued by the employees if not invested. What happens when valuation metrics are off the wall and inflation is off the wall.. most corporations want to shift liability away from themselves to the fiduciary. Self directed plans will not be allowed by the plan sponsors. The fiduciary will present all members of the plan a core 'menu' of funds.
I like the thread. So how do you game the gamers? What are the tells that imply security A is going from $45 to $55? Thats what's important. I'm all about coattails. Tell me more.
banks are the red line and green/blue line is what you should be doing the lines will approximate the better you get. The wave heights and depths are oscillations of the market. Pick a certain standard deviation and wait for the oscillation. you log the dollar volume list, and see which ones are constantly on the list, and wait for the general market to get hit, and if your trend filter has not changed, get into the dollar volume list. you look for correlation of the ups/downs of individual securities to the general market. To 'paint' the general market picture, the banks are using those specific securities. usually the individual securities will have twice the percentage move of the index.