When up is down and in is out. . . don't believe your eyes. . .
For educational purposes, regarding short-sell tactics. . .check this out. . .I thought I had seen it all . . .
This week, I observed known short-sellers finding "dog" stocks with news and presenting them in chat rooms, one after another until one would get buying interest. . .now they ALREADY know it is a dog stock, and have probably already checked to make sure no "real" news was coming. . .so presenting it to daytraders is a sure bet. . . they KNOW that nobody ELSE will start buying, so they just "bait" the daytraders until they get a nibble. . . then they "call" a short target and trap the daytraders after the runup with a sudden simultaneous short-attack. . .forcing MMs to drop the bid hard until it is back down from where it came and beyond. Remember short-selling requires volume and buying to get a pop to the downside when sell-volume OUTWEIGHS buy volume.
I was amazed at the number of crappy stocks that kept getting plastered in thedaytraders chat rooms to trap unsuspecting daytraders. . . one after another. . .like placing a hot but rancid turkey dinner in an alley full of hungry bums. . .they will try their hardest to eat, but it will certainly make them sick.
So then, I wonder how many presentations on SI are meant to do the same. . .
Then on the flip side of the same coin. . . according to what I am hearing. . .there seems to have been a "set-up" of a recent IPO. PCNTF is an Asian ISP with zillions of shares scattered all over the world. . .then a Barney releases the IPO at 25, then leaks out a verbal target of 60. You have all heard the hype, "Asian AOL," "bringing the internet to Asia," "only Asian ISP stock sold in US."
If you wonder WHY that is. . .keep reading. . . from what the message boards are saying. . .it appears that the stock wasn't released to make GAINS in the American market at all. . . but rather to fall back to the pennies. . .which would make millions and millions for the MAJOR short-sellers in Asia.
Remember how we discussed this method of pump, then dump, then short?
This is very common with OTC BB stocks, especially those foreign based. Also popular with gangsters. By covering over and over, they can increase their short positions all the way down to the pennies, where a nice reverse-split often awaits. The money that can be made running one of these scams is INFINITELY bigger than any available honest trading method. . .[do the math to see what I mean].
Remember one of my stock trading rules? Any stock where assets or earnings cannot be readily verified, due to being offshore, delayed, secret, confusing, foreign currency or accounting methods, pending mergers or similar. . . should be avoided flatly. If you don't UNDERSTAND the financials. . .then why own it?
What a SCORE. . .disguising as a MAJOR IPO play. . .and attracting American sheep to give up their recent profits. . . . It's an old penny stock trick.
The old shell game. . .which shell is the pea under? Answer: none.
This one could get front page in the big magazines when it gets exposed. How they got Wall Street to play along, I'll never. . .well . . .I guess offshore money DOES convert into greenbacks.
The chart for it, hardly resembles an IPO issue of an internet play. . . these usually consolidate briefly, before shooting up higher. Instead, this chart shows it shooting straight up to 70, then immediately falling right back to 50, where it has started that all-too-familiar downward trend of a stock that is heavily shorted.
And as in most of these "master-minded" ploys. . . those in on it are right there to take all the credit and rub everyone's nose in their masterful manipulation. . . you know. . .calling it a POS stock. . with so many shares that those offered in the U.S. are worthless. . vulgarities and provocation. . . Sort of conjure's up memories of the ol' PRFM thread blitz. . . .when you read thru the posts on PCNTF on Yahoo, etc. . .mocking every "moronic" American that went long on it.
From what I gather, it looks like this one had been planned for a LONG LONG time. . . . to make the most money from those stupid enough to think they could actually comprehend the complexities of an Asian company selling stock in the U.S. [for clarity, those words convey message board sentiment. . .not mine].
But it seems the main common denominator of the short-sellers bragging about their victory in PCNTF, is their conspicuous trouble with English sentence structrue. Hello?
Anyway. . .as we learn the ins and outs of the short side, so we can become better traders. . .we find that the ins could really be outs and the outs could be something never before seen.
Rande Is |
