4 ms·

Yeah, with so much trading volume, it doesn't seem hard to blend in with the crowd. Whenever there's a big Musk tweet, there's already tons of news-based trader

Yeah, with so much trading volume, it doesn't seem hard to blend in with the crowd. Whenever there's a big Musk tweet, there's already tons of news-based traders that immediately react and earn huge profits. You could set up a plausible history ahead of time by doing innocent TSLA trades. Maybe establish a pattern of regularly scheduled trades. And then it just so happens that the fake tweet comes out right around when your scheduled trade was going to execute.

Sebb767 6y ago
You still need to keep your cool and explain that to the FBI agent at your door. OPSEC is hard. Not to mention that this requires a lot of upfront time and capital and depends on no circuit breaker being pulled, which would be quite likely giving the high amount of damage and blatant market manipulation.
TigeriusKirk 6y ago
You don't even have to trade the stock you attack publicly. You could trade a highly correlated stock. Maybe you wouldn't make quite as much, but you would be much harder to find.
- michaelmarion 6y ago
  Great point. Bloomberg's Matt Levine has been referenced elsewhere in this discussion, but he had this exact point [1] in today's newsletter regarding market reactions to COVID vaccine news: "Signs of progress toward a coronavirus vaccine by Moderna propelled most corners of the stock market higher. … Most of the gains followed the release of a new study suggesting Moderna had reached a breakthrough with its coronavirus vaccine, setting the stage for a larger trial at the end of this month. Cruise-ship operators, airliners and other stocks sensitive to the coronavirus crisis led the stock market higher. Shares of Moderna rose $5.18, or 6.9%, to $80.22. Royal Caribbean Cruises Ltd. was up 21.2%. Norwegian Cruise Line Holdings Ltd. was up 20.7%. Carnival Corp. was up 16.2%. American Airlines Group Inc. was also up 16.2%. United Airlines Holdings was up 14.6%. The biggest gainers were the vaccine-sensitive industries, not Moderna itself." [1] https://www.bloomberg.com/opinion/articles/2020-07-16/a-vaccine-could-cure-airlines https://www.bloomberg.com/opinion/articles/2020-07-16/a-vacc...
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Sebb767 6y ago

You still need to keep your cool and explain that to the FBI agent at your door. OPSEC is hard. Not to mention that this requires a lot of upfront time and capital and depends on no circuit breaker being pulled, which would be quite likely giving the high amount of damage and blatant market manipulation.

TigeriusKirk 6y ago

You don't even have to trade the stock you attack publicly. You could trade a highly correlated stock. Maybe you wouldn't make quite as much, but you would be much harder to find.

michaelmarion 6y ago
Great point. Bloomberg's Matt Levine has been referenced elsewhere in this discussion, but he had this exact point [1] in today's newsletter regarding market reactions to COVID vaccine news: "Signs of progress toward a coronavirus vaccine by Moderna propelled most corners of the stock market higher. … Most of the gains followed the release of a new study suggesting Moderna had reached a breakthrough with its coronavirus vaccine, setting the stage for a larger trial at the end of this month. Cruise-ship operators, airliners and other stocks sensitive to the coronavirus crisis led the stock market higher. Shares of Moderna rose $5.18, or 6.9%, to $80.22. Royal Caribbean Cruises Ltd. was up 21.2%. Norwegian Cruise Line Holdings Ltd. was up 20.7%. Carnival Corp. was up 16.2%. American Airlines Group Inc. was also up 16.2%. United Airlines Holdings was up 14.6%. The biggest gainers were the vaccine-sensitive industries, not Moderna itself." [1] https://www.bloomberg.com/opinion/articles/2020-07-16/a-vaccine-could-cure-airlines https://www.bloomberg.com/opinion/articles/2020-07-16/a-vacc...
- deleted 6y ago
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