Guys, Wallstreet Are Pumping And Dumping The Stocks. Let Me Explain
Q: Guys, wallstreet are pumping and dumping the stocks. Let me explain. You can see it with most of the stocks (ie. GOOG, GS and most of the banks and other stocks. The marketmakers have a good idea what to expect from earnings so they push the price of the stock up prior to earnings release. ( and do not tell me they cannot manipulate stocks....remember Crammer recently admitted he does it himself). The company reports the earnings. Mainstreet and the common trader runs in and buys the stock and wallstreet sell their shares to mainstreet and make a profit. The stock falls shortly after. I bet you are going to see the same thing with GE tomorrow. GE will show a profit and meet earnings expectations the stock will briefly rally and then drop. Be careful ! do not get blindsided especially if you are holding margin positions get out as soon as the stock jumps. However i hope i am wrong and the stock doubles in value but you can see the trend with a lot of the stocks.
A: Seems to be a lot more pumping than dumping then... Look at the 1 month chart on damn near anything, but just check the indices to get a good average.. I think in the world of psychology, I think they call this "projection". Earnings, so long as they are at least what the street expects, don't mean much. With billions floating in to index funds due to the apparent "recovery" (which we won't know if it's a real recovery or just a short squeeze for several months), GE will be trending upward due to market pressure if nothing else. Unless earnings are really bad, if you're long; grab your ankles for the next few months. allow me to first express on behalf of all of us on Google board,the pleasure we get from your humbling posts on this board! but i most say i am a little confused bc i never though of you as a shorter, i always thought you had more of a conservative investing style but then of course nobody knows a man better than himself and if you are telling us to short this stock then we would be fools not to Do you think the same "Pump & Dump" escapade your talking about is going on right now with BAC, before/after their earnings come out? It will be a good short play coming up shortly (pun intended); as well as taking my profits now from my long position with BAC. The only reason I am slightly conflicted is I feel it could keep going up if not now in the short, definitely down the road a bit. But hey, I can always get back in at some point, right; and I can't let greed get the best of me, but I am an amateur 24y/o investor with a "long" future ahead of me. So unless BAC gets fully nationalized, imagine what all of my shares will be worth in 10,20,50 years from now when I picked them up at pretty much $4.99 a pop back in January. And to Mr. Buffet if you happen to come across this response, I would like to personally thank you for all of your wisdom and advice I have gained through reading articles and books on you, seeing you on on TV, Internet....etc. It has definitely been a strong foundation and starting point for me and will help me get to where I need and want to be in life, both now in the present, as well as in the future.