Did anybody watch OMGA on LVL 2... clearly 2 MM's forced the squeeze.
Just to start off, I watch chats on mIRC #daytraders, Merlin's chat, and TokyoJoe's chat while trading so I get a good idea of what is being hyped by whom in real time. It was clear as daylight to many of us in #Daytraders that MM's RAJA and LEHM (Raymond James & Lehman Brothers?) were holding up the bid, presumably to force a short squeeze. In fact, during an important period (around 2:45 pm), RAJA was absolutely parked at 11 1/2 bid and was eating all sellers and would not allow the price to go down. RAJA was doing this all day today and yesterday,propping up the price of OMGA (and buying tons of shares in the process), but today, he had help from LEHM who seemed to be on the bid when RAJA dropped off... it seemed like they were colluding and taking turns propping up the bid, ... I can only guess that RAJA did this to cause shorts to panic and cover which then started a daytrading stampede on OMGA. I don't think the Yahoo BS was responsible for the brunt of today's run.
When it was clear that OMGA was not going to be allowed to go under 11 1/2, quite a few daytraders on #daytraders jumped on OMGA long, and it was on it's way to 12. Around this time, Merlin called OMGA as a pick and a bunch of his flock jammed on OMGA... then more panic short covering and you get the picture. What interested me was that nobody mentioned anything about a Yahoo rumor until the stock was already in the high 12's, so IMO, the rumor was not the impetus.
RAJA and LEHM walk up the bid starting at 2PM, shorts start covering, OMGA now at 11 1/2 and won't go down cause RAJA and LEHM buying all at 11 1/2. OMGA starts popping up on daytrading radar screens at around 11 cause it's always a stock thats in play and is now at a new days high. Daytraders jump on cause they know OMGA is heavily shorted. Throw in a crew from #daytraders and Merlin, well you got the combustion you saw today. And in all this mess, nobody mentioned anything about a IBM/OMGA deal until the action was finishing up on the stock. IMO, what happened today was pure manipulation by 2 MM's forcing the bid up causing a chain of events to occur. ---Not Howie
PS A couple of additional interesting things to note
1) It seems OMGA would have gone up a lot more if it wasn't for ARCA coming back on line. ARCA was down sometime mid afternoon and when it looked like OMGA was headed for 14 and beyond, a bunch of ARCA sell orders appeared all at once... which kind of saved the day.
2) As I mentioned before and as others at #daytraders have mentioned, RAJA accumulated a bunch of shares over the past 2 days. Somewhere between 12 and 13, I noticed RAJA on the sell side unloading... but couldn't exactly tell how many shares he unloaded versus how many he accumulated over the past 2 days... It must have been RAJA's plan to prop up OMGA's price and buy all the shares that were necc. to do so and then sell those shares into the short squeeze that he caused...
3) at 16:17 a 35,000 share trade at 13 1/4 (OMGA high for the day) was printed... evidently a late entered trade (all other after hours trades were in the 11 1/2 range). I get the feeling it's significant, but don't know what to read into it. |
