Many years ago when I was trading front month US options, which settled monthly only at the time, I was perplexed that somebody bought a single way-out-of-the-money call option off me worth $5 (100 x $0.05) late on the day of expiry. I had made the mistake of not stipulating sell all 10 contracts that I was holding or nothing. So, who bought that one contract? You guessed it - my own broker! Commission on the sale = $15, so $15-5 = $10. My broker, to whom I had paid plenty in commission, was prepared to screw me for $10. Today, we see CREAM pumping off a long base against BNB. In the space of 5 minutes, its price moved ca 17%, first rising sharply to suck in the buyers, then dropping like a stone to take their stops before returning to mid-range. Who do we think was best positioned to execute this anomalous trading? You've got to figure that the exchanges that execute your orders, or agents acting for them, are trading against you and that needs to be factored in when setting your stops and profit targets. Indeed, if you have the time and inclination to monitor your trades in real time, there's something to be said for not giving the exchanges that information; instead react to what happens based on mental stops. This aside, as retail traders, can we gain anything useful from these manipulations? Logic suggests that there's not much point in moving a market by such a large percentage if the gain to come isn't going to be bigger. So, my guess is that CREAM/BNB is setting up to pump despite being overbought. Don't trade on this suggestion but let's see how it plays out.
Comment:
So, we got the pump. CREAM up over 160% since 8 December 2021. I'll be looking for more anomalous trading during the basing phase for clues as to which ALTs may be under accumulation in readiness for the pump.