Mike
Lv 6
Mike asked in Business & FinanceInvesting · 1 decade ago

Is someone at yahoo finance trying to manipulate the stock market?

This morning, one hours before the opening bell, I turned on the TV and watched CNBC and it was showing that the futures (DOW, S&P500, and NASDAQ) were down 1/2%-1% and the European indices (FTSE, DAX, and CAC) were down 1%-2%.

I then went to yahoo finance on my computer and all European indices were down 1%-2%. About a 1/2 hour before the opening bell, I again looked at the European indices on yahoo finance and noticed that several of the indices had become 2%-4% positive. I then started watching CNBC to see if there was any news but there wasn't any. I then again looked at the European indices on yahoo finance and they were all up 2%-4%. I then checked pre-market trading for stocks and they were mostly up 2%-4%. I then watched CNBC again and all the US futures had reversed and were now indicating 1/2%-1% up. When the opening bell occurred, yahoo finance was back to normal and working correctly.

Because the problems started occuring 1/2 hour prior to the opening bell and quit failing right at the opening bell, it may seem likely that someone at yahoo finance may be trying to manipulate the stock market.

Update:

At the time yahoo finance was failing, I checked msn money and everything was showing normal.

Update 2:

Also when I checked the prices for the stocks and indices on yahoo finance, the prices were all correct but the percentage gain was wrong indicating 2%-4% higher than actual.

Update 3:

sandyaa,

I generally use yahoo finance to get an overall snapshot of the market since it is easier to use for that puropse than through my broker site.

I've never seen anything like that on other sites especially it occuring only for the 1/2 prior to the opening bell. The previous closing price was correct and the current price was correct but the gain was incorrect.

Update 4:

b2fnow.

No conspiracy but we could possibly envision the possibility that some programmer at yahoo finance was trading futures and had rigged yahoo finace to increase his chances of winning.

How many investors may possibly buy or sell the market on open if they went to yahoo finace just before opening bell and saw all green or all red? It wouldn't be difficult for some programmer that had access to the server code to put a bug in the program that could be triggered from the programmers home computer.

Update 5:

Johnny Wadd,

freestockcharts.com is nice but it doesn't support foreign exchanges. For example if I wanted to see what a stock was doing pre-market of hours, I can use yahoo finance to check that stock on the FTSE, DAX, or CAC exchanges. Very few sites (including my broker) will allow you to check stocks on foreign exchanges.

4 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Why do people always look for some kind of conspiracy theory? Manipulate the market? You've got to be kidding.They aren't even a broker, nor do they trade the markets. How could they possibly gain? What advantage could they possibly gain by "manipulating the market?" Think, man.

    They try to keep things up to date as possible, because it's to their advantage to do so. But do you realize how many sources of data they are dealing with, and how things change from normal market hours to Globex, back and forth, for two after-hours sessions of trading? And how many contracts and exchanges and stocks and bonds and commodities, etc. do you think they follow? They rely on their source, and maybe that source relies on another source, etc. What do you really expect for free?

    On the other hand, if you are a trader, and rely on that data, then you need a live data feed and a dedicated trading program. That's why people have their own data feed, because free data is not expected to be reliable. It's just information when available. It's just news, not the same thing as a dedicated paid-for service.

    You can download ThinkOrSwim for free and have a live data feed.

    Here are some good sites for real-time quotes

    http://www.freestockcharts.com/

    http://quotes.freerealtime.com/dl/frt/S

    http://new.quote.com/

    http://www.pcquote.com/

    http://www.hquotes.com/ free trial of software to download historical intraday quotes and draw charts (Metastock and ASCII format)

    Addendum:

    First, Yahoo does not and cannot manipulate the stock market. Yahoo can only manipulate Yahoo. Yahoo is not a data source, but a middleman providing data generated somewhere else; they just pass it on.

    Let's suppose a programmer at Yahoo wants to manipulate the data, and does so. He is risking his career, his whole future, and facing jail time to make one or two trades, supposedly at his advantage. Yahoo knows exactly when things go wrong. They would catch the problem immediately if generated from within, and correct it. Problem solved, programmer gone, no recurrence.

    I still don't understand how this programmer could gain an advantage, even if he could pull off such a big ***** as manipulating data and causing Yahoo to lose face. Do you make a trade when you see all red or green? If so, you would realize some mistake when you go to place the trade, because nobody places a trade without getting a quote from the brokerage they're trading through. No trader with any sense trades the open with market orders, unless it's a gap fade. And all investors, by definition, do not make senseless snap decision trades based on an up open or down open. And this affects you how, when you're trading the DAX or FTSE? You don't have to entertain every silly thought that comes into your head, unless absolutely necessary.

    Realistically, there's no one thing you base your decision on to trade. If the data is out of line, you usually recognize it and check it out, or just back off. I'm curious why you put so much work and thought and energy into such a ridiculous scheme, rather than recognizing it for a simple data error that happens all the time on all free services? You've been trading how long?

    Suppose you take it at face value, for what it is, and it becomes a much simpler dilemma that is resolvable without near the frantic thought process and emotion and stress and headache and fear and cynicism of everyone conspiring against you.

    Yahoo also has a paid-for data service. If I were you, I would apply, and ask them if this service experiences the same problems as you describe, and see how they explain it. Go to the horse's mouth before suspecting aliens.

    If your broker doesn't provide the service you require, move on to someone that does. Why allow them to make the problem yours? Why waste your time scrambling around, day after day, squandering your resources and energy, for something that doesn't suit you?

    I have several friends that use Think or Swim (TOS), have seen it recommended on YA regularly, and have it installed on my computer as a free trial for several months now. You don't have to fund an account, just download it and give it a try, see what it will do.

    https://www.thinkorswim.com/tos/client/index.jsp

    It sounds like you are a little tight for extra money, and trading is hard enough without trading on a budget. Otherwise you could check out a couple of the top names in the industry like TradeStation and Realtick from TerraNovaOnline.

    One of the most important Samurai texts ever written, by Miyamoto Musashi, “The Book of the Five Rings (1643)”, offers this advice: “Think of what is right and true. Learn to see everything accurately. Become aware of what is not obvious. Be careful even in small matters. Do not do anything useless.”

    There can be no great success in trading (life) without great commitment, hard work, discipline, and the realization of the “right” type of thinking.

  • Anonymous
    4 years ago

    1

    Source(s): Invest in Forex Tips http://teres.info/TheTradingCode
  • 1 decade ago

    I have noticed this also, but this is not confined to Yahoo. CNBC and MSN portfolio manager have had similar problems from time to time. I don't know if it is just a server problem or what. I do not trust the price quotes in these servers, and when I trade I would use a more reliable source.

  • 1 decade ago

    yahoo finance serves its purpose but there are better sites out there. i like freestockcharts.com myself, and no, i have nothing to do with them and am not trying to advertise their site.

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