Tracking Dark Pools – Even as They Try to Stay Secret
Wall Street is constantly making massive billion-dollar trades that move stocks, whole markets, even entire economies.
You would think trades this massive would be easy to spot.
But here’s the crazy thing… they aren’t.
And why is that?
It’s because Wall Street actually “hides” these trades.
It may sound impossible to hide a multi-billion-dollar trade, but it isn’t.
You see, Wall Street places many of their trades on private networks known as Dark Pools.
When they do this, they’re completely out of the public eye… and hidden from view for 99% of folks out there.
But, if you can spot them – as I can – you can anticipate stock price movements with stunning accuracy.
And that’s a huge advantage over just about every other investor out there.
I’ll explain all of this in a Special Event called The Dark Pool Summit next Wednesday, December 13, at 8:00 p.m. Eastern time.
In the meantime, let me show you just how powerful this advantage is.
Case Study: Big Money In Action
My job running a trading desk and matching institutional buyers gave me a unique vantage point to see just how Big Money operates – which is basically as secretly as they can.
If that feels like it puts you at a disadvantage… well, it does. Institutions account for between 70% and 90% of daily trading volume, and if you don’t know where those billions of dollars are flowing, you’re immediately swimming against the tide.
But my front-row seat to the tricks of Big Money helped me level the playing field.
These buyers and sellers I played matchmaker for were the heavy hitters – the Big Money players who were the largest professional investors on the planet.
That job gave me a special window into an elite slice of Wall Street, a “club” whose members operate skillfully and stealthily – even as they heavily influence which stocks win and which ones lose.
This club does everything in its power to operate as quietly as possible while impacting prices as minimally as possible – from going through trade desk managers like me who kept their secrets to trading in anonymous Dark Pools, to which the rest of us aren’t invited.
I watched. I learned. And I asked a lot of questions.
I noticed that when huge investors made moves, tell-tale signals were given off – even if they were made in Dark Pools or through professionals like me whom they paid to act as secretly and stealthily as possible.
These signals were like “footprints” that could be tracked. And those footprints let me see when unusual trading was occurring. These signals weren’t visible to the naked eye, but the data retrieval and analysis models I constructed (I’m a data freak) showed me when this unusual trading activity was likely taking place.
You might think: Just look when a stock moved up or down on larger than usual volume. That thinking is on the right path, but there’s more to what’s going on – and it’s not always visible on a chart with volume.
Just take a look at this stock chart from earlier this year for Meta Platforms (META), the social media giant formerly known as Facebook…
You see a huge gap up in price on a day when there was also huge volume (the bars at the bottom). Investors rushed in to lift META 23% on Feb. 2, the next trading day after CEO Mark Zuckerberg declared 2023 the company’s “year of efficiency.”
And that was after the company reported a 55% drop in net income from the year before.
Nobody could have expected that, right?
But… what if you’d received a signal before Zuckerberg made his comment and bought in before the spike?
The “smart money” seems to frequently sniff out such things before everyday investors. That was true here. Remember when I told you that unusual trading activity wasn’t always visible on everyday charts like the one above?
Well, look now at this chart from my Quantum Edge system…
I highlighted that Feb. 2 price rocket and huge volume with a blue arrow, the same as on the previous chart.
But look at that yellow arrow. That points to Jan. 27, and that green bar is a signal my system picked up of unusual buying – a full 5 days before a 23% surge.
I may not know the “why” immediately, but it’s the “what” that matters. Even transactions in Dark Pools, as anonymous as they are, have to show up on the tape. Knowing what to look for and being able to see where that money is flowing gives us a huge advantage.
How huge? The data shows our system picks stocks that make money roughly 70% of the time, and it outperformed the market 7-to-1 over three decades of data.
I’ll show you more about how it all works in The Dark Pool Summit next Wednesday. More importantly, we’ll talk about how you can level the playing field and put this unique advantage to work for you.
Sincerely,
Jason Bodner
Editor, Jason Bodner’s Power Trends
P.S. Dark Pools is an area of the markets the public has known little about for years.
Of course, Wall Street wants it that way.
After all, the Dark Pools provide value for the rich. It’s great for them, but nobody else.
On Wednesday, Dec. 13, I’ll pull back the curtain on the market phenomenon in The Dark Pool Summit.
I’ve studied it for years, and even helped track these money flow systems on Wall Street.
It happens at 8:00 PM Eastern, and I hope to see you there.