Nanex Research

Nanex ~ 15-Jan-2013 ~ Whac-a-Mole Manipulation in VALV

Another case of Whac-a-Mole, also known as layering. An illegal, manipulation strategy that will earn you a fine (but only if you live in China).

Some of the charts below show trades (circles), and other charts show bids and offers (triangles), color coded by exchange. Triangles pointing up are bids, and those pointing down are asks. The dark shading in middle is the NBBO (National Best Bid/Offer): it represents the highest bid and lowest offer among the 9 exchanges submitting quotes in this stock. Two of the "exchanges" in the legend, NQNX and NTRF are trade reporting facilities used by dark pools and internalizers to submit trade executions. Dark pools and internalizers do not submit quotes - one reason they are called "dark".

See also this page for another manipulation pattern spotted earlier the same day, or this page for a collection of 50 charts of manipulative patterns.

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