Blind luck or insider trading? Stock markets stunned by ‘hanky panky’ as perfectly timed trades net BILLIONS from Trump’s China trade moves and Iran’s attacks on Saudi Arabia
- Unknown traders have enjoyed tremendous profits overnight by either buying or shorting before key trade and other developments
- Investors earned a $180 million profit by buying futures contracts 10 minutes before the close of trading before the attack on Saudi oil infrastructure
- Someone buying futures contracts made $180 million when President Trump announced he would postpone tariffs as part of the U.S.-China trade war
- An investor or group made $1.8 billion when Trump announced in Osaka that U.S.-China talks were ‘back on track’
- Former trader who examined the market movements did not speculate on who might be making the trades or if they had inside information
Unidentified traders have been making moves that netted hundreds of millions – sometimes within minutes – amid the chaotic moves of the Trump era in trade and other areas.
One such moe involved a 30-point gain in the S&P 500 index on Sept. 11th, the day President Donald Trump announced he would postpone some tariffs amid the ongoing trade war with China.
That same day, an investor or investors purchased contracts known as e-minis that jumped in value by $190 million based on Trump’s comments and word from Beijing, an analysis by Vanity Fair found in an examination of several trades that earned immediate massive pay-days that were triggered by political events.
Unidentified investors have made millions and in some cases more than $1 billion off trades that were impacted by market swings following political moves and statements by President Donald Trump
During his trip to Osaka in June, President Trump declared U.S.-China talks ‘back on track’ and announced unspecified Chinese purchases of agriculture products.
The broad stock market then experienced a boomlet that was particularly beneficial to the personal or group who made a June 28 buy 420,000 e-minis, an electronically traded futures contract.
The purchases were put in 30 minutes before trading closed in Chicago markets. By about a week later, the person’s investment had gained in value by $1.8 billion.
Reporter William Cohan, a former trader, reports that Chicago traders have been watching such transactions with ‘shock and awe,’ and that their timing – coupled with the huge earnings that accompanied them – has caused traders to wonder whether things are ‘on the level.’
‘Are the people behind these trades incredibly lucky, or do they have access to information that other people don’t have about, say, Trump’s or Beijing’s latest thinking on the trade war or any other of a number of ways that Trump is able to move the markets through his tweeting or slips of the tongue? Essentially, do they have inside information?’ he wrote.
Investors earned a $180 million profit by buying futures contracts 10 minutes before the close of trading before the attack on Saudi oil infrastructure
The futures trades were made at the Chicago Mercantile Exchange, where regulators have the ability to monitor any suspicious market moves.
Although the Vanity Fair piece does not level accusations at any particular insider, it points to the ‘fantastically profitable mystery of the Trump chaos trades’ in a sub-headline.
Trump regularly talks up the stock market and has bragged during key milestones. At the same time, he doesn’t shy from brash rhetoric, such as threatening in a letter to Turkey’s president that he didn’t want to be responsible for ‘destroying the Turkish economy.’
Trump infamously told reporters in August that ‘we’ve gotten two calls—very, very good calls’ from Chinese officials, during a time of high trade tensions. The White House late said Trump misspoke and conflated events to include public comments Chinese Vice Premier Liu He.
In one trade, investors made a $180 million profit by buying futures contracts 10 minutes before the close of trading before the attack on Saudi oil infrastructure.
Another trade the story examines is when someone bought 55,000 e-mini contracts Sept. 3. Soon after, Hong Kong leader Carrie Lam announced she was pulling back the controversial extradition bill that had led to angry street protests. The purchaser made an $82.5 million profit, according to the article.