Is this true Surveiller? How do you protect us? Manipulation on the Canadian Market
I have witnessed trades for many stocks where you can clearly see the manipulative efforts of small block sell orders coming through, that appear to be intentionally forcing share price down. Those with real-time Level II will be able to see this activity all day long. Much of this activity runs through the houses of Canada’s biggest banks, and it almost always forces the price of stocks down to a point where liquidity and buy orders have completely dried up and there is no more stock floating around in the system to short.
With the removal of the uptick rule, firms are now shorting at will and destroying companies for small profits. Institutions have many advantages that we don’t. They can short stock and have a fairly lengthy period before they have to replace that stock, should their shorts need to be covered. Even if their shorts need to be covered in a short time frame, they can extend that time frame by borrowing stock owned by their clients.
Too big too fail is sadly a very real scenario. As smaller institutions dry up, investors will transfer over to the bigger guys who will then control more money.
Considering that more than 50% of the world’s financing for resource projects stems from Canada, with a third coming form the TSX and the Venture, the resource sector is not looking very bright.
But don’t think its over. Not for one second.