My personal view is that short selling abuses in US markets cannot stop without effective regulation of market makers, hedge funds, exchanges, investment managers and securities custodians. I do not think it should be s return to the Glass-Steagall era, though it should have some such features, explicitly including serious regulation of the DTC.Honest question...probably only for those who subscribe that the MM and heggies are guilty as F#@& in manipulation of TSLA. How do TSLA shareholders ever get free from their tractor beam? Even if we have a breakout to the upside, we've seen them effectively push it back down extreme points over many following days/weeks. Maybe the assumption is that they can only perform this extreme manipulation when the market/macro conditions are poor and therefore we're just waiting for a helpful macro that creates almost non-stop positive pressure that prevents the manipulators from regaining any foothold? Asking for a friend.
None of that will happen while TSLA manipulation Is so profitable. The combination of huge pools available for securities lending, large retail investor holdings and a generous helping of controversy make the opportunity irresistible for manipulators.
Then remember the massive political donations of those beneficiaries and it’s clear no reform can happen, not even with broad investor support. I wish I could call this post sarcastic but I cannot.
Tesla is so very disruptive on so many fronts, as is it’s CEO, on even more, that there is no realistic chance of these manipulations generating political will, exacerbated by the controversies surrounding the very person who has led all this success.
The Tesla reality is analogous to those of Henry Ford, JD Rockefeller, Andrew Carnegie and JP Morgan. In all those cases effective regulation only happened when they were becoming old.
Those are imperfect analogies because all of then were primary targets due to their dominance.
With Tesla and Elon there are some of those features with the added part that TSLA is directly targeted by even deeper pockets. Then add the enmity of numerous States fomented by auto dealer groups, fossil fuel groups, plus the power of gasoline taxes…
All of that guarantees continuing high volatility.
Within our own group we have people like @Papafox who do a stellar job of tracking and reporting on manipulations, especially the ones that directly affect retail players in all this.
These also help generate more highly profitable business for market makers. If we carefully read @Papafox we can see more specifically why effective regulation is unlikely; the current process is extremely profitable for too many large political contributors.