Is the Chinese government, in cooperation with other world controlling affluents manipulating our stock market

Question

Today, the Chinese government said that tomorrow, they would be removing 18% of its subsidies to it's market......right before the olympics mind you, so that their people would have to pay 18% more for oil. China is 40% of the world's oil energy market, says CNBC. Multiplying .18 by .4 gives an overall effect of a world drop in energy prices of 5.6%.

This immediately reflected in the stock market as their change was announced late morning.

Energy stocks dropped and stocks that depended on oil rose by incremental amounts. Do you think Chinese affluents who planned this move, made serious money on our stock market this morning, and any who participated along with them, other affluents, who were made aware of the changes coming, who made the deals to have this take place.

Consider, if they had purchased options on the right side of this trade while these stocks were moving in the opposite direction to their play, they bought the options cheap and they cashed in big time!

Answer 1

NO

Answer 2

I doubt they would knowingly do this to create a profit via options.  They had not raised prices on gas for their people as gas prices skyrocketed, so at some point they had to do this.  I'm sure if there was unusual option activity we would catch this and not let them cash in on their own doing.  It is just something that had to be done on their end at some point.  Interesting for sure.

Answer 3

Very possible but the SEC keeps an eye of all activities so they could not have gotten away with too much, otherwise it would have sounded an alarm.

Answer 4

The US attorney wouldn't prosecute anyone.  The Chinese are in China.  There is no US attorney's office in Shanghai.

Answer 5

You have too much time on your hands.

Answer 6

You don't have to look to China, consider the fund managers here. Lots of funds own huge percentages of stocks in some companies. All they have to do is shift the distribution of stocks in their funds a little bit and voila.

I give you an example, look up ELN. The company is worthless but trades regular between $1 and $50. Look it up over 10 years, you will be surprised. Fidelity owns a lot of their stock in funds. Enough said.

Why is Buffet is sitting on 60 Billions, hmmm.

But I am just a crazy loon.