Merrill Lynch, Bank Of America, You are challenged

Dear Researchers at Merrill Lynch, Bank Of America, referred in articles in previous post, You are challenged to stand on your duty of recognizing the rights of others. You are challenged that you may have violated my copyright by publishing without credit the groundbreaking research, from paper by myself published at Sorry To Blow Your $u$$le.
Please either provide proof of originality of your thoughts or cease publishing any/all information relating on this subject and perform other remedies on this subject to be spelled in agreement between us. I strongly suspect that Merrill Lynch does not have support for statements proving that this is their original research. So prove otherwise please

=============================================================

Now Some very interesting observations I learned while looking into this possible copyright violation by Merril Lynch/Bank Of America.

It appears like there are people that act like investment advisor, writers that seem to get information from larger companies, such as ML/BOA that is intended to be "blasted" across the Internet. I am not sure what this means, but is it possible that financial web sites are becoming mouth peaces of few and powerful. Sounds Familiar?

Do you wonder what information you get from these "bigger" sites and what do they aggregate and how are they really payed for their "services" , while making you think , they are for little guys/girls?

You ponder those questions Dear Friend. I do not really depend for my living on this site, but some people are dependent on their sites for their living and they seem to have succumbed to strange forces

I am sure this was unintentional

From: BChikvash@aol.comTo: hblodget@alleyinsider.com, lorimer.wilson@live.comDate: Sat, 5 Sep 2009 05:27:32 EDTSubject: Notice Of violation of copyright
Dear Lorimer,Dear Henry
Please note that your recent articles at
http://www.businessinsider.com/henry-blodget-if-us-is-japan-sp-will-soar-40-over-the-next-year-2009-8#
and at
http://www.safehaven.com/article-14362.htm
use the original research conducted myself, at,
http://www.safehaven.com/article-7497.htm

providing for the first time , as best as , I know the DXY*SPX versus Nikkey I ask you to immediately publish on your respective sites and at safehaven a corrective article, that shall point out that this is an original research by boris chikvashvili of http://www.borisc.blogspot/ (Anti-Sopitalist) and not original research of Merrill Lynch. I understand , that this is simply an ovesight on your part, and no other actions are required from you to rememdy this case. Thank you very much. Please provide as soon as you can the email contacts of the Merrill Lynch Researchers, so that I can advise them , as well, that theirs is not the original reserach.

Getting upto speed

Dot Net is Updated

Markets At CrossRoads

Citizens For Honest Markets Manifesto

We considered variety of aspects of the networks and trading, which has left no doubt that the basic principles of a the market, insiders win, is upheld. Insider can be those who possess none public information due to their positions either inside the companies or industry or market making process. That is Corporate Executive's Deep Pocketed Market researchers and Brokers Dealers. Public is SCREWED all the time, unless and until public understands how to cope with all of these factors.
Let us say Goldman tell its affiliated hedge funds that "market is a buy". You see , it does not matter if market was a buy or not. Now it is a buy, because of the power of the Goldman affiliates that start buying. You be sure that you are never told by Goldman the same thing at the same time it tells that to its affiliates and internal groups to start buying. Like you were told OIL will go to 85 when OIl was already closer to 60. You did not know that when OIL was 35 did you? Somebody did! Now, As I said already, I do not know if this criminal or not, I am not a securities lawyer, but I can sure as hell can tell you that dual role of Goldman is/should be not tailorable. Let alone the fact that they can also influence media, which hangs on every peace of (mis)information Goldman wants to put out. You remember , I described to how the market can be "RUN" by few players ganging together. What is a difference between 10 Russians ganging together and "running the market" as compared to Goldman telling 1000 of its affiliate funds and internals groups "buy the market" is not that ganging of sorts.
You see, the reason , the FREE CAPITALISM does not exist any more is that the FED and Government allow the concept of too big to fail to persist. As long as that is the case and markets are not policed with regard to the size and power a single entity/group can obtain , the FREE CAPITALISM is none existent. It is SOPITALISM. System of Government being beholden to special interests, financial , in this case.
Again, I am not a lawyer and do not pretend to speak from the position of the laws, but I sure can tell you that something is totally wrong with regulation and the laws if they allow this to persist.

And What about the aspects of technology. Since the way technology facilitates the advantages of rich over poor in the market, is not somebody, like SEC , supposed to be on the case of COLLOCATION aspects of the exchanges and the rest of NETWORK inequities?

In any case, I can only hope you as an individual investor get better ideas on how the networks and regulations and media information flow operate, to make you a better trader. None of these by themselves will make you really good trader( for that you must trade), but knowing this context creates field of knowlege that prevents you from trying to compete in places where you can not win. For example , while the cost of transactions incurred by institutions trying to compete with Goldman in trade size does not really interest you , because you are a small trader and happy to exectute your trade 1-2 cents away from precise target you want act at. You are not concerned that much with Goldman being after you becuase of your size. Yes, in total thousands of investors still lose money to Goldman, but on the individual bases that is not very improtant given the liquidity of the markets and your gain/loss depend more on your correct trade selection. You are ok with costs if you can transact for 1 dollar a trade like I do. most of the time. Another issue is news and how interpret them. In light of what I told you about the "running the markets" you should gresp easily , why you must suspect every and all news coming from the financial establishment and news media beholden to them. You should develop sense of , who cares what Goldman says, or If Goldman says that it most, likely is already positioned to take advantage of the moves described or , is actually, taking advantage of the news it has just planted!!!. If you anderstood what I just said, you are , light years ahead from where you where before you read this.

Citizens For Honest Markets Manifesto

Please ignore the Pcratio/lower part of this picture, see the second picture for PCratio update instead.

So, what does the FREE SPEACH AND HONEST MARKETS HAVE TO DO WITH EACH OTHER?
You Can Have Either/Both, As Long As You Are Rich!!!
Today we shall discuss a bit more technical aspects of trading systems and networks. Networks have been designed to support the reliability. Without such reliability Internet will be unusable for anything that looks like a transaction. For example, if one could not verify that the execution order has been received by the exchange computer, it would be very hard to proceed and do the next operation, whatever that maybe, perhaps CANCEL/REPLACE to fool the "other guy". So, in general, it takes the network basic protocols to carry the traffic and certify the delivery of the data on the most elementary level of the networks. This protocol is called TCPIP( Transmission Control Protocol for Internet). Now this basic protocol knows nothing and cares none about user traffic. It does not know about the user information such as FIX ( Financial Excuse Protocol) CANCEL command. This is similar to the railway car not knowing what is put on it to be carried ( Coal or Grains etc.) It just knows that the content must be delivered from one place to another. In the case of trading example that means delivering the message from brokers computer to exchange computer. In the collocation case, there is only one router between these two computers and that means very short time, but amazingly enough even that can be (ab)used to shorten the trading decision times. So the Goldman ( example) computer sends BUY command, Goldman's Computer encodes it into TCPIP protocol and sends it to ARCA(EXCHANGE) router. Routers do not care, as mentioned, about BUY, they just know the envelope (TCPIP) that BUY was encoded in and at the basic level they confirm the reception of the envelope. The BUY was not yet received by the Exchange Computer, but the envelope delivery was confirmed by the router to the Goldman computer. Now If Goldman Programmers were smart and had access to the underlying TCPIP stack of communications inside the operation system( say LINUX/WINDOWS) and intercept the fact of ACKnowledgement of the BUY being delivered to router, they can surmise that the BUY will very soon(milliseconds) will make it to the EXCHANGE computer. This is very reliable, therefore Goldman's trading platform may say, let us not wait before the EXCHANGE computer got the envelope from router and decoded the BUY message from the envelope and send an answer back to Goldman's Computer( via router and new TCPIP envelope of its own initiation). So, now, Goldman , can short circuit the time and send CANCEL/REPLACE order!!!
This simply means that Goldman's computer was able to place two FIX protocol commands ( BUY, CANCEL) in a manner that saved, at least, couple turnaround times for the higher level protocols. This is similar to sending somebody a letter via post office and assuming that they got it, therefore it is ok to send the next one , which is totally dependent on the context of the first one. Interesting ha? So, you ask why not send them together anyway? well this is not always possible or desirable. You may want the messages to be broken for security purposes or because the paper can not handle both messages together(: - ( you can always get more paper, but just assume that is the case with FIX protocol and it can not get two messages at once).
You see now the games people play to achieve absolute speeds of execution even when the broker computer is collocated with exchange computers. I can even imagine that there will be day when all this is hard coded into the HARDWARE and is executed at faster speed than it takes conventional computer/operating systems to delver messages between the programs and hardware that puts out the messages into the communications lines.
HUH! You see the technology? You can play a lots of expensive games if you have money!

Citizens For Honest Mmarkets Manifesto

Considering the tight correlations/anticorrelations in the market these days. The picture below is not just about EURO! It is about OIL, STOCKS, EURO , METALS etc. All markets of interest. All markets of great interest(:-

1027.58 1029.65 1033.01 1037.19

spx
1018.85 1016.78 1013.42 1009.24

Now, I have not yet completed much of my thought about the High Frequency Trading and all kinds of misconceptions and statements going around the net, by people who hardly understand what they are talking about, but pretend to be telling the world something new. Ok, there may be something new, here...
IT IS THE TECHNOLOGY STUPID!
Leave the technology alone and all you are left with the good old days of Jessy Liver more and his era , simply amplified and put on steroids by the modern technology and in many ways more opaque, due those facts. Only people well versed in technology and trading can tell you that there is nothing new here. It is all the same old , same old... Insider trading, front running etc... POTENTIAL ( now, watch I have not accused anybody here... Yet(:-, All I say is that there is a potential, just like there was before). Remember Many of those Collocating their trading computers on the exchanges are brokers as well. Not just proprietary traders. Many hedge funds are totally dependent on GOLDMAN for example, for funds/loans, executions , information , etc.

So, the question arises, are these situations susceptible to all the sickness the exchanges have , always, possessed?

My Unqualified answer is Yes, and there is nothing new under the SUN.

The only question is what are you going about it?

Are you going to join the "Citizens for Honest Markets" movement or set there and say. Well, this is capitalism.

I am not entirely passionate about this issue. Ambivalence comes in, because, that is the way capitalism worked for over hundreds of years and there is lot of that going in our society anyway.

If I could find the financial backing and support, I maybe able to put together a "real" No BS proposal for the exchanges that will be free and publicly transparent where it can not be. But this where I would leave it.

And I would also like to tell you that, you do not have to get excited, because somebody with a interesting name and/or shouting on TV attracts attention, without really comprehending the entire issue or able to propose the solution ( technically speaking) for these
AGE OLD PROBLEMS IN THE MARKETS.