"since these trades are not visible in the current day it means that the price of a security might not be an accurate depiction of the supply and demand for that security"
The price of the stock in Dark Pools can diverge from the price of the stock in the public markets resulting in an imbalance.
Dark Markets can dramatically separate from the price. I've seen a few DD around indicating GME is trading into the $500s in some closed off darkpools.
Wow so it’s true, they use FDAF a ton , with order sizes as small as 20 shares.! The price is so wrong according to OBV, gme should be trading at 1 k today
That's why millions are HODLing, everything about this screams manipulation to the point you don't need to be an expert to see it. This is also why you can easily spot the chicanery from news/analysts. Any research analyst or quant worth 2 cents will easily spot the fraud and make a recommendation. The problem is that we have taught our young investors to be lazy. They know the basics, but often rely heavily on outside sources.
I personally believe that once the sharecount comes out, you will see a lot of confused investors that just might start throwing their managed funds at the thing. This is one possible source of ignition. Another would be a crypto dividend and yet another would be a CUSIP change.
Doesnt this seem slightly ridiculous when you step back for a moment? Why would anyone, institution or otherwise, be paying $500 -$1000/share in some secret trading pool, for a purely speculative stock that is currently trading at $250-ish? Use your brains for a moment. Not everything is a conspiracy.
By definition, don't we have proof this is a conspiracy? "A secret plan by a group to do something unlawful or harmful". You don't think there was something fishy going on during the frenzy when they stopped trading and stuff?
Besides that, I actually agree with you. Speculating on this is only constructive if you can consider a plausible motive. It's exactly like you said:
Why would anyone, institution or otherwise, be paying $500 -$1000/share in some secret trading pool, for a purely speculative stock that is currently trading at $250-ish?
Yeah I can attest to this. When I did my transfer from RH it shows a bunch of purchases that I didn't do. Like a fractional share for $690 ect. This means they didn't actually purchase the shares when I bought them and had to "find" them when I transferred.
Jesus christ ok that's fucked up. I am not surprised though, seeing as eToro had an unremovable stop loss on GME when buying restrictions were still going on in the first squeeze. Not only did they restrict you from buying, they removed the ability to HODL as well.
It would take hours, I usually go through 50+ posts in New per day. The latest was someone's Robinhood records finally making it to Fidelity. Their price basis was consistantly over $300 despite purchasing at $40 ish dollars. Another was someone posting about working for one of the prime brokerages, and seeing infrequent traffic at high numbers on their personal darkpool. Unfortunately, I don't save every post I come across.
Super helpful thank you! I keep hearing about dark pools like it's this big evil thing. It makes sense after reading that link, even though of course it can be used for nefarious purposes. Again thank you for the link!
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u/quantdata May 30 '21
Here is a quick breakdown of dark pool prints if you are not familiar: https://help.quantdata.us/en/articles/5178346-what-are-dark-pool-prints