CNBC Equals Manipulation

An email interchange with a noteworthy trader this morning:

“…and when one is down rather than up, we call it a “flash crash” meaning it was not based on more sellers than buyers.”

That ‘flash crash’ nonsense was straight out of Hollywood script writing. It was an organized response. Scary how much media power out there is posing as news when its just an agenda:

“I came to the conclusion about 30 years ago (I guess that makes me old) that 99% of what is said about markets is either untrue or irrelevant. Yes, the media is very scary. They don’t want to interview trend followers because we have no reasons for trades other than price tells us to act. Forbes used to call me for interviews all the time, but I got to the point that I told them that I would not discuss news or fundamentals, so they misquoted me a few times (which was enough) to make me put an end to it.”

CNBC won’t touch me because I don’t kiss the ring (see my film piece on Bartiromo), but if CNBC puts me on it will be a one time viral legend:

“If trend following is true (it is), then there is no need for analysts, academics, media news reporters, etc. Trend following therefore puts a whole lot of people with pink slips out walking the bricks looking for something productive to do. But since the game is rigged, we of course will never see it. Some of my own clients that have gotten extremely wealthy with my trades, [and they] still think that my trades are based on fundamentals. Of course they have been told otherwise 1000 times, but they are hard-wired to not get it. I think that is the universal problem with what we are doing in general. They don’t get it.”

Yes, true.

3 thoughts on “CNBC Equals Manipulation

  1. The “not getting it” creates the alpha. All of it IS necessary. Trend followers make money off other investors’ false perceptions. Everyone can’t be great at the same thing. It’s why 6’8″ guys usually play basketball. CNBC,Cramer,analysts,advisories, all of those things, I appreciate their existence, because they make trend following potent. ZERO-SUM game.

  2. like minds …this was posted in reply to Phil Davis’s blog on Seeking Alpha “Has CNBC Gone too far?” duh..

    Good insights i.e. CNBC’s serving as an entertainment vehicle, not a news vehicle. Explaining why CNN’s anchor threw in the towel; the audience doesn’t want news, they want excitement and play-by-play commentary akin to ESPN!
    Funny that Bernie Madoff made the exact same remark i.e. “CNBC shouting fire..”on his blog week before last when Bill Maher asked him what he thought the flash crash was enflammed by..
    BM2: Ok..So, you don’t think it was anyone with fat fingers that might have made a mistake when pressing a computer button and sending a Weapon of Financial Destruction, or what I call a”WFD” into the electronic markets?

    BM1: The markets were overdue for a sell-off, as I had pointed out on my blog several times in recent weeks, but I think the violent move down last Thursday (one that I told my friends to use as an opportunity to cover their shorts at the exact moment when the Dow traded at 10,000), that move may very well have been caused by the talking dick heads over at CNBC.

    While they were busy talking the market down on Thursday, they inserted a live satellite feed that was broadcasting street riots taking place in Athens! Crazy..Talk about inciting a riot! They might has well have moved their broadcast desk into a movie theater and started shouting “Fire!”
    bernard-madoff-scam.blogspot.com

  3. it’s Wed June 2 2010, Gallaraga perfect game ruined by an umpire. I’m long a zillion puts. Can someone tell me the trend, please?

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