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Image is copied from one of u\/chayse1984's posts
Your green and red candles don't form pretty little shapes for no reason, and it's not all Brownian Motion you stochastic cucks.
So we got two big fucking triangles up here, but do you even know why? Did you notice how both these triangles end on a Friday, dipshits? Okay... let me tell you a story.
It's 2002. Young high-flying Kenny G coked up off his fabulously successful hedge fund Shitadel decided fuck-you money wasn't enough for him. So he set out to dominate the world of centralized finance and become a Market Maker. This was the start of Shitadel Securities, the company that now pays millions of dollars to laugh at what options you're buying on the toilet.
Almost immediately following its conception, Shitadel Securities takes off like a rocket. Around this time, MMs start quoting stock and option prices in penny increments instead of quarters, meaning MMs had to compete with each other by taking a risk on holding onto the right securities at the right time. And boy does Shitadel, an options MM nonetheless, have an appetite for risk. Shitadel Securities does so well that Kenny starts getting cocky and thinks he can turn Shitadel into an Investment Bank, the king of Chicago. But Wall Street smells his bullshit all the way from New York, and Kenny fails to penetrate the industry.
Devastated. For the first time in Kenny's padded, cushiony life, he faces what still isn't real hardship. Too uncool for the club, it's at this point that Kenny decides to take out his insecurities (aha, get it?) on retail investors. Shitadel doubles down on something we are all now familiar with: Payment for Order Flow, a practice pioneered by none other than Bernie Madoff. E-Trade, TD Ameritrade, Charles Schwab, Ally Invest, First Trade, TradeStation, Interactive Brokers Lite, and yes, Robinhood, all contract with Shitadel for PFOF. It's with a heavy heart that I tell you, even Fidelity's options are routed to Shitadel under PFOF.
This brings us to today with Shitadel Securities as the largest internalizer in finance. "Oh for fucks sakes, what the hell is an internalizer now?"
At least the SEC made a pretty little graphic for us, right?
In PFOF, your order is sent from whatever discount brokerage you're using to Shitadel Securities, who decides to either: A) pass your order onto the open market, where we like to watch a little green and red candles jump around or B) to take the other side of your order (short whatever you long, or long whatever you short) at which point the life of your order ends, never making it to the open market.
You heard me right. When you use a discount brokerage like Robinhood, your order may never land on the open market. But this is fine right?... Well let's imagine that there's only one monopolistic internalizer trading a security, and that internalizer is internalizing all the retail volume trying to buy a security. Even if millions of retail traders are buying the security, the stock price on the open market wouldn't move, there would be no volume on the open market, and the internalizer would have a massive short position on the stock that they have to unload. What this looks like in the world of green and red candles is a massive bull flag while the internalizer is internalizing and massive upward breakouts when the internalizer unloads their short position.
Okay, but in order for Shitadel to do this, they would need to be a monopoly, right?
[From https:\/\/www.citadelsecurities.com\/products\/equities-and-options\/](https://preview.redd.it/e9dxgz1npyn61.png?width=1759&format=png&auto=webp&s=27801bbcd469eda01