By Brandon Matthews
Afternoon trading has Sirius XM conspiracy theorists once again calling for an SEC investigation into what can only be described as suspicious trading activity, to say the least.
I took notice of the action as it was taking place, and am fortunate to have installed a computer software program called JING, which not only allows for still screenshots to be taken but also live video of anything that happens on a computer screen. The maximum amount of video is just 5 minutes, but I was able to capture 12 different video clips of the suspicious activity as it was happening.
The series of videos clearly demonstrates that the best bid and ask prices were being completely ignored. Most specifically, it became apparent that any orders that were being placed by the Cincinnati Exchange were treated as though they did not exist as market makers ISEG and NSDQ executed trades out of order and at lesser prices than the better CINN orders. It appears that this was done intentionally to control the price of SIRI shares to the benefit of a particular market maker. Retail orders are also being reported to Satwaves as having not been filled as well, although the bid and ask prices were better in most cases than the actual orders that did execute at points during the day.
Another interesting video clip shows that at the close, there were 2 identical trades placed. There was a buy and a sell placed at .35 and for the same number of shares which were placed simultaneously. These two orders were matched by the computer which resulted in what is known as “painting the tape,” which resulted in a false closing price being reported.
It is these types of questionable trades that have investors questioning whether the SEC or the Obama administration are sincere in their outward desire to put an end to stock market schemes. Investors in Sirius XM have been complaining about these types of problems for years. Orders for the movie Stock Shock are off the charts. These video clips will no doubt make their way into future editions. One has to question when the federal government will stop such illegal trading practices and the fleecing of the average American.
I have uploaded the following video clips at screencast.com. Here are 2 of the twelve. The first is a five minute clip that shows the CINN bid being ignored. The 10 that remain on screencast are similar to this although shorter in duration. The second clip shows the painted close.
Position: Long SIRI
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