Thursday, February 22, 2024

February 22

12:40 Capitalism 102.

NVidia stock grew today 16%, after it announced last quarter revenue went up 22%, believe it or not. As a result its capitalization rose today some 277 billion to almost 2 trillion and together with AMD it dragged the whole market up 2%, in a high flat type rally, continuing the spiraling inflation that started last November.

However, this does not reflect in dividends and it breaks the laws of the Universe. You cannot have 22% increase in revenue without that reflecting in profit and/or dividends which are kept symbolic (4 cents for an 800 dollars share). Yeah it is obvious they don't pay dividends, profit from price raising is much greater than that. Reinvesting? That should reflect in the assets

As for how they pick the time for announcing quarterly revenue, that is an entirely different story. Or maybe the same.

I wouldn't have written this at this hour if i was not awakened @noon and kept awake after 3 hours of sleep (was up all night) by the people upstairs. One person, much lighter than those who generated the stumps left again on an electric bike, in the opposite direction as for the shorter distance to complex entrance, possibly through the park. It had his/her face covered with something black, like in a pretty obvious black face role playing.

3:30 PM. No i did not buy AMD stock last night. I bought a mini PC which was on sale to replace the old Lenovo AIO 300 Celeron i'm struggling with because of low speed.

5:40 As i said in past, i once took 2000 dollars of a credit card and opened an Ameritrade account and after a few days of doing transactions "on paper" that is imaginary, to see how skilled i am, i started buying and selling literally. I believe anybody can open an account with no or little money and do just that. It is exciting to say the least.

According to what i did on paper, i should have made 50-100 dollars a day. The are no fees per transaction, but there is a limit of 3 day trades (buying and selling the same stock within five days for accounts under 10000 dollars). If you had more than that you could do unlimited day trading.

How it works. You sit there, pick a stock and watch the price. When you think it is good for you, you click. You have of course to calculate the number of shares you buy cause they are not shown in dollars, however the software won't let you go over your capital LOL.

Or you can post an offer and the system will buy the stock for you at that price if it ever goes there. Of course you can only buy in the limit of the number of shares offered by a seller. The other way around. You could ask for a price and will be notified when your stock was sold. It is very very simple actually (there are more complicated types of transactions like short selling, etc.).

But of course it did not work out. I was usually picking stocks of dying pharma startups (a patent and a a few studies usually with up to 10 people) which are so many, with 100-200 millions capital which prices were fluctuating a lot, sometimes predictable by using the provided algorithms (free thinkorswim software provided by Ameritrade).

However. My feel was some entities with a bit more money than mine, or simply malevolent were starting to manipulate the price as soon as i got in.

How is that possible. You could open two Ameritrade accounts, make an offer on one and buy it with the other. After you raise the price enough, you reverse the operation. Is that simple. If you own a lot of that stock, the price will go higher and you can sell it all in the end. But that is just an example.

I believe Ameritrade will see what you did and shut your accounts. But you could do it with a friend or a few friends and they will not catch you.

But the big money don't use Ameritrade, they go and buy and sell on the floor or simply with supercomputers hooked on market's computers that use automated algorithms that can do thousands of transaction a second and those obviously are not limited in number of day trades LOL

There is an easy way to detect stock manipulation if you look at the volume of transactions. If the volume is low and the price goes up and down significantly that means there is a possibility of such manipulations.

I was looking today at the volume of trades of NVidia (sells with red, buys with green bars at the bottom of the graph). In the millions of shares, x800, that is a few billion dollars each time, especially at the beginning of the day. Today NVidia went up 277 billions in capital. More than that. Most of the price hike happened overnight during the so called after hours trading (or pre-market, after 4 PM Eastern time), when usually there is a very low trading volume. Capisci?

But does that capital exist or is available for NVidia to buy anything like supply or pay dividends or do anything with it? The only time when they could do this is when they first went public and sold that stock. After that, it caught a life of its own. There is absolutely no link between the corporation and its activity and that market capital, which became a Ponzi scheme. Pretty much like and stock on the stock market.

There is absolutely no link between economic activities of corporations that do not pay dividends and their stock traded at the stock exchanges. For that reason it is wrong to talk about how well the economy is doing based on market indices.

7:55 And yes, you could call your congressman and tell them to make high frequency computer algorithm AI trading illegal, after hours trading illegal, circular ownership illegal, buy back illegal. Bring back the traders on the floor. What it was made for. Make America Great Again.

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