Posted On: 07/26/2014 12:24:42 PM
Post# of 5949
To clarify your point on naked shorting, MM's short first (by 'selling'), then purchase the security at a later date and time (with ‘a buy’) to cover, it’s not the other way around as you state. That said, I will address all issues regarding the MM's handing of "the event" of July 7th, with one phrase: frequency trading. It’s no secret that since the May 6th, 2010 flash crash, when an aberration in S&P 500 futures trading pushed the Dow Jones Industrial Average down 1,000 points in about 20 minutes, trading firms have beefed up technology with (more redundant systems) and (more robust-software) to better control and prevent out of control situations, and sometimes exploit securities.
The day after “the event,” on or about July 8th, RIGH had hit the OCTShortReport list of Naked Shorted Shares list because: at least two large buyers purchasing tens of millions of shares. Immediately, the trading firm's “frequency trading system” kicked in to control the share price. Throughout the remainder of the day (and days), MM’s worked in unison on the long and short side of the trade to financially recover their part of the shares that were sold on July 7th.
Most people know me well-enough to know this is not a knock on Angel, but… regarding Angel’s “fluff” (and to be blunt), “meaningless” PR of July 7th, that was a CYA (cover you’re a$k) PR, IMO. It was rushed, not very-well thought out and said, well…nothing. It reeked of a holy shipt mock scenario moment.
MOCK SCENARIO:
MM to Angel: “We’ve got a situation.”
Angel: “Please explain.”
MM: “Two large buyers on the pre-market bid, orders in excess of 200 million.” “Would you like to do a pre-market PR or explain to FINRA after the fact with a PR stating why the unusual volume and a share price run of hundreds of millions of shares traded for the day.”
Angel: "I’ll take care of it."
RIGH no doubt was on a lot of radars that day. FINRA just shrugged their shoulders. Why? A PR was released. The above scenario, on an inquiry by FINRA (having to explain what happened) occurs all the time on Wall Street. The share price runs on unusual volume. A company PR comes out the next day with no earthly explanation why. The way Angel handled it was smart, it raised fewer eyebrows, despite the content being oddly worded, at best.
Regarding the selling of BLOCKS the size of 89MM, 34MM, 56MM, 46MM AT .0005 JUST 30 MINUTES AFTER IT HAD RUN TO .0009. The answer is simple. The MM’s sold and bought from each other throughout the day. It’s no secret that MM’s work together to provide and maintain a market in a security, such as RIGH. For days, weeks, months they buy and sell shares from and to each other – a match made via strength in numbers (Watch “Wall Street” for the Hollywood version).
For the record, my letter to FINRA, (which I have not yet sent), has everything to do with the possible manipulation of share price by a well-known entity, that no longer has ties to RIGH. I don’t think I need to go into detail here (on who or why). When I heard talk of 4’s hitting the ask, that’s when I shifted gears and crafted the letter. It’s ready, I only need to squeeze the trigger…
This is all IMHO, but I do base most on fact.
The day after “the event,” on or about July 8th, RIGH had hit the OCTShortReport list of Naked Shorted Shares list because: at least two large buyers purchasing tens of millions of shares. Immediately, the trading firm's “frequency trading system” kicked in to control the share price. Throughout the remainder of the day (and days), MM’s worked in unison on the long and short side of the trade to financially recover their part of the shares that were sold on July 7th.
Most people know me well-enough to know this is not a knock on Angel, but… regarding Angel’s “fluff” (and to be blunt), “meaningless” PR of July 7th, that was a CYA (cover you’re a$k) PR, IMO. It was rushed, not very-well thought out and said, well…nothing. It reeked of a holy shipt mock scenario moment.
MOCK SCENARIO:
MM to Angel: “We’ve got a situation.”
Angel: “Please explain.”
MM: “Two large buyers on the pre-market bid, orders in excess of 200 million.” “Would you like to do a pre-market PR or explain to FINRA after the fact with a PR stating why the unusual volume and a share price run of hundreds of millions of shares traded for the day.”
Angel: "I’ll take care of it."
RIGH no doubt was on a lot of radars that day. FINRA just shrugged their shoulders. Why? A PR was released. The above scenario, on an inquiry by FINRA (having to explain what happened) occurs all the time on Wall Street. The share price runs on unusual volume. A company PR comes out the next day with no earthly explanation why. The way Angel handled it was smart, it raised fewer eyebrows, despite the content being oddly worded, at best.
Regarding the selling of BLOCKS the size of 89MM, 34MM, 56MM, 46MM AT .0005 JUST 30 MINUTES AFTER IT HAD RUN TO .0009. The answer is simple. The MM’s sold and bought from each other throughout the day. It’s no secret that MM’s work together to provide and maintain a market in a security, such as RIGH. For days, weeks, months they buy and sell shares from and to each other – a match made via strength in numbers (Watch “Wall Street” for the Hollywood version).
For the record, my letter to FINRA, (which I have not yet sent), has everything to do with the possible manipulation of share price by a well-known entity, that no longer has ties to RIGH. I don’t think I need to go into detail here (on who or why). When I heard talk of 4’s hitting the ask, that’s when I shifted gears and crafted the letter. It’s ready, I only need to squeeze the trigger…
This is all IMHO, but I do base most on fact.
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