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Here’s a question…

Where do you think stocks trade ?

If you answer Wall Street, New York Stock Exchange, or the Nasdaq… then you answered like 99% of every trader.

It’s only partially true… But that’s not the right answer.

The real stock market trades on little known private exchanges, called Dark Pools.  

Now what is a Dark Pool?

Think about it as your private party that only the elite of the elite are invited to.

I’m talking about those Grammy types of parties out in LA.

And inside these Dark Pools such as Sigma X, owned and operated privately by Goldman Sachs, is a secret and hidden place for hedge funds and whale investors to trade without the public even seeing!

That’s because they operate in the darkness, outside of the “tape” the NYSE shows you.

And they can report their trades to a reporting facility up to 24 hours after it happened!

But enough about what a Dark Pool is… let’s take a look at a few examples of how monitoring these reporting facilities for the Dark Pools can lead to some serious profits for traders.

Here’s how…

 

Dark Pool Profits

 

Dark Pool Profits is focused on identifying unique and obscured trading activity that is done in one of the most secretive markets.  

This is so secretive that nobody can trade in it without some serious capital and being registered as a hedge fund.

Now we don’t need to worry about secrecy and anaymonty with Dark Pool Profits… Since I monitor these markets and find the trades that stand out as suspicious.  

And once a trade hits the tape it’s considered public information…

Meaning you don’t have to worry about insider trading violations!

So let’s take a closer look at how unusual dark pool trading activity gave away the move in MARA.  

 

Unusual Dark Pool Trading Activity

 

Let me explain how this works…

It’s important to remember that Dark Pools come in two different flavors:

  1. A market for insiders or people “in the know” to place trades discreetly without impacting the public markets
  2. A market for hedge funds and large institutions to execute trades on stocks they want to buy aggressively

Now, these are two reasons why monitoring the Dark Pools is so lucrative.  

It boils down to just two main things…

Greedy investors and supply and demand!

So….Why does Dark Pool Volumes matter?

Well this scanner is a custom development that scans and highlights single trades that are usual and unusual compared to historical trading records.

I mean… why would traders target a random stock with that much money, anyways?

I would guess they know something about this stock and it’s worth following their lead.

Now… let’s take a look at what happened to KODK and why it became headline news in the days following the signal!

 

KODK – Did The Traders Have Insider Information?

 

It’s too hard to tell WHY the volume started to increase on KODK in the day prior to it’s huge run higher.

But one thing I do know….is that this volume came on strong and aggressive right from the start of the trading day!

And that’s where my scanner alerted me to KODK around 9:30 am !

And was it a doozy!

This thing hit and took off without looking back!

What did the charts look like on KODK when it went off?

 

Source: Thinkorswim

 

And as you can see, the very next day after the alert went off, KODK soared over 500% in value!

 

What Happened in KODK To Cause This Move

 

This is clearly a case of a trader knowing information and making an informed trading decision prior to the news breaking on the stock.

 

 

And the headlines said it all…

The stock soared on the NPA grant from the government the day after!

Talk about one heck of a payday for those traders who had this information early!

And it was enough of a move, it now caught the attention of the SEC!

Now, KODK is in the crosshairs of the regulatory agencies

 

 

Now don’t worry!

Even though the SEC is investigating KODK and other traders for possible insider information and trading, that doesn’t impact us !

Since all trades are considered public information, it’s considered public and non-private information once my proprietary scanner found this trade and signaled it’s alert!

 

Wrapping Up

 

It’s hard to follow every stock in the market…

And without a system to help you find this needle in the haystack just a little bit easier, you’re left out rolling the dice and gambling on random stocks.

You may as well just be throwing darts with blindfolds on at that rate…

But thankfully I was able to make the process just a little easier with the help of the custom software and the ability to monitor what the insiders are doing in these dark pools.

And since this is information that I can’t even get from a Bloomberg Terminal, I can see information that is powerful and nobody else has access to it.

Which is why I do the heavy lifting to get these alerts out to you as the action happens so you can join the insiders and pull down these monster returns too!

Ready to be a part of this wild action?

Click here to sign up for Dark Pool Profits today!

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

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