Thursday, November 16th, 2017

Stock Market Manipulation – How Stock Manipulation Works Manipulation is part of the stock trading world. What do I mean? Well, this is a zero sum game and everyone can not and will not be a winner. The winners are usually the more informed wealthier bunch of traders such as hedge funds, institutions and big brokerage firms such as Goldman Sachs. Every morning the big brokerage firms push out to their clients a few company’s stocks that they have upgraded, downgraded, reiterated coverage or changed their price target. Many retail clients pay to much attention to these recommendations and get caught holding the bag on losing trades, because they buy into the theory that this firm upgraded shares and that it will come back. The unfortunate thing is that those that get caught holding the bag and “believing” what the firm pushed out are likely taking the other side of the trade of what the firm is actually “really” doing. (CREE) is a perfect example of seeing a mid day upgrade a few hours before an earnings release. In the video I will show you what they were actually doing before earnings with shares down more than 13% the next day after earnings. Early in the morning in my live chat room I cited put buyers coming into the February $60 puts at $2.32 per contract. The day after the were trading at $6.90 per contract or over 200% profit. This was likely a more informed trader likely knowing what the news was before the rest. Here’s the thing I have found over the years with the more informed wealthier bunch


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