SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Lessons Learned

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Don Green10/18/2005 11:41:20 AM
   of 923
 
To: Dan Fleuris who wrote (48448) 10/18/2005 11:33:40 AM
From: flashbob of 48459

HERE'S INSTITUTIONAL DUMPING POST AND HOW IT'S DONE AND WHY...

here's how the institutions RIP YOU OFF!

when a good company like Apple has "good news" and the stock reachs a HIGH...and a day after levels off like Apple did ...GOING UP FRIDAY ONLY .26 cents...the INSTITUTIONS KNOW IT HAS REACHED A GOOD POINT AT WHICH TO "START UNLOADING"...

understand, the institutions own 73% of Apple and WHEN THEY SEE A GOOD HIGH and know there is going to be "no more good news" for a while...they know it's time to "unload" shares
AT THAT HIGH...

Now, if they put "too many shares" UP FOR SALE...they'll cause a SUDDEN and maybe long-term DOWNDRAFT IN THE STOCK...

...so the method they use to UNLOAD SHARES TO YOU (now remember WHY ARE THEY are SELLING...becuase they KNOW THE STOCK HAS REACHED IT'S HIGH FOR THE PERIOD UNTIL "NEW NEWS WILL AFFECT IT'S PRICE)

so, since they don't want to "tank" the stock into a "steady selloff" ...

WHAT THEY DO IS: "PRIME THE PUMP!"

that means they FLOOD THE "BUY" SIDE WITH ORDERS (SUPPORTING AND INCREASING THE STOCK PRICE...but this is only temporary...as the "non-institutional buyers JUMP IN..."ALSO ON THE BUY SIDE"...they REDUCE THEIR BUY ORDERS (now that they primed the "buying pump" with non-institutional investors AND SWITCH TO "STEADY SALES TO YOU" ...THEREBY MAKING A GOOD PROFIT...and "keeping the price as high as they can for as long as they can" SO THEY CAN KEEP UNLOADING their SHARES (which are in most cases at their high) TO YOU!

RIGHT NOW THEY ARE DOING THIS "OVER AND OVER"

EVENTUALLY THE MKT DUE TO REAL FACTORS LIKE THE "CURRENT HORRENDOUS RISE IN ENERGY INFLATION" STARTS TANKING THE "WHOLE MKT" (THIS HASN'T HAPPENED YET...BUT IT'S BUILDING FOR A "BIG CORRECTION"...

SO BOTTOM LINE: the institutions are unloading "as much stock" AS THEY CAN WHILE PRICES ARE STILL HIGH!

they'll take a "bath" too when the "correction" comes (like 10-15 percent if we're lucky)
BUT THEY AT LEAST GET RID OF SOME OF THEIR HUGE HOLDINGS "at as good a price as possible!"

So, don't think Apple is going UP because of GOOD POTENTIAL GOING FORWARD...

it's going UP because the INSTITUTIONS (mostly big mutual fund) are unloading TO YOU as I've described above.)

When the "correction" comes YOU WILL BE THE ONE "HOLDING THOSE OVERVALUED SHARES!"

they will too, but less the amount THEY SOLD TO YOU...

YOU WILL SHARE WITH THEM THE PAIN OF MKTS
THAT CAN'T INDEFINITELY "SUSTAIN STOCK VALUATIONS"
IN AN "ECONOMY" THAT'S HEADING SOUTH FAST...

the only thing holding it UP right now...IS THE EXAGGERATED MEDIA HYPE ON 3RD QTR EARNINGS...

like GM stock going UP 7.5% $2.00 a share YESTERDAY

ON NEWS THAT GM "LOST" 1.6 BILLION DOLLARS THIS QTR...the reason the analysts said the stock WENT UP was because of the 1 BILLION PER YEAR CONCESSION they won on "health care costs" from their employees.

The reality subtract 1/4 billion from 1.6 billion AND TELL ME THE STOCK SHOULD HAVE WENT UP! (in reality, THEY ARE PRACTICALLY BANKRUPT AND HAVE VERY DIM PROSPECTS GOING FORWARD...beginning to see how this hype from analysts WHO ARE LIKELY IN THE POCKETS OPF THE MUTUALS ARE ALLOWING...

UNLOADING OF "OVERVALUED STOCK" (not only Apple but almost all companys in this climate)
to YOU the "gullible" non-institutional investors...

THIS GOES ON UNTIL THE CORRECTION INNEVITABLY COMES...BUT THEN...IT'S TOO LATE FOR YOU!

that's about HOW IT WORKS in "institutional manipulation 101."

ALMOST EVERYONE I KNOW INCLUDING ME: IS IN "CASH"...except for energy stocks holding (like NGS, VLO)...

it's YOUR LOSS coming your way SOON!

me, I'll BUY BACK IN MOST GOOD ISSUES (like Apple, Nvidia...) "POINTS" DOWN FROM WHERE THEY ARE NOW...

afterall, as much as YOU MIGHT LIKE A STOCK...but if it's going to TAKE A HIT...(even though you know it's one of the best companies)...but if it's still going to take a hit...

YOU MIGHT AS WELL UNLOAD IT TOO (LIKE THE INSTITUTIONS) AND BUY IT BACK "CHEAPER!" after the "correction!"
...that's JUST REASONABLY PRUDENT TRADING IN THIS ECONOMIC CLIMATE! IT'S YOUR MONEY GUYS!

I just don't like the "Pros" screwed over the "novices."
I love being a "burr in their saddle" and skewing their plans. That's why I post here and in many other place and on issue not connected with the stock-mkt.

flashrob
Message 21802711
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext