The Real Story Behind Goldman Sachs’ $100 Million 1Q Trading Profits
Source: http://feedproxy.google.com/~r/ContrarianProfits/~3/RlTd19aaXFM/16556Posted on Tuesday, May 12th, 2009 | In Market Commentary
According to Crisis Strategy Alert senior analyst, Charles Delvalle, “the big reason the Goldman did so well was because the bid/ask spreads on stock trades were far, far higher than normal.”
Charles is fond of ranting about banks. We are too. It’s a match made in heaven. Here’s what Charles wrote to us in a recent email:
This reminds us of the program GS is involved in with the NYSE. This program is supposed to “facilitate liquidity” and “lower the bid/ask spread”. Since GS acts as a sort of market maker in this program, they are also paid to do it.
Do you see the conflict?
GS is making the markets. And it’s allowing them to profit handsomely by allowing the bid/ask spread to tick higher than normal. This is a conflict of interest that should have been obvious to the NYSE. But now days, everyone is in cahoots.
Over the last year, Charles has been testing and perfecting a new money-making strategy. Charles’s “alpha” tests have returned a 100% win-rate over the last year. This unorthodox trading method actually allows you to receive cash payouts direct to your bank account every single month. Obviously, we’re very excited about it.
We will be inviting a limited number of Notes readers to participate in the beta testing of this super safe trading strategy, which we call the “payout method.” Participation will not be free (though it will be significantly discounted). And it’s limited to sophisticated investors with level 3 options trading accounts. But if you have one of these accounts, you can tap into these upfront cash credits each month. The average cash gain each month from the “alpha” tests was $2,504, which can be verified by our legal department. Be on the lookout for announcements about the upcoming beta-tests in next week’s Notes.
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bank account, Charles Delvalle, contrarian profits, Goldman Sachs, Market Commentary, USD
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