The numbers are incredible. Goldman Sachs just revealed in an SEC filing that its traders made money on every single
trading day last quarter, a record for the firm. Net revenue for
trading was $25 million or higher in all of the first quarter’s 63
trading days with 35 of those days bringing in more $100 million.
Even if you had a 95% likelihood of a winning day, you would have
only a 3.9% chance of doing it 63 trading sessions in a row.
Does a Perfect Trading Quarter Score One for the Rigged-Market Theory?
Whatever the cause of the perfect quarter, it comes as part of a
pattern. Goldman Sachs only recorded 11 loss days in the prior 12 months. So while some luck is
involved in stringing together a perfect Quarter, the trend of success does not seem to be a fluke.
It gets more curious, because it wasn't just Goldman. Bank of America, Citigroup, and JPMorgan each also recorded a perfect quarter of trading profits. What are the odds of that happening? Apparently, pretty high under their current operating conditions.
When the government is on a mission, you may not like the policies … but as an investor, you fight it at your peril. More simply put, don't fight the Fed.
It looks like the Banks figured that out.
Goldman figured it out sooner.