How the PROs *orchestrate* the SHORT DISTORT
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The Short & Distort Scheme they used on MJNA stock (Good example)
The following is something I copied that was posted by " Stevenkind " on another site
The Short & Distort Scheme
Stage I: Monitoring
In stage I of a Short & Distort scheme Short groups Monitor spikes in volumes on stocks with no rumors.
Stage 2: Flagging
Shorts Flag stocks that run up then sits back and wait patiently for their time.
Stage 3: Preparation
The Shorters research the company and develop their Distortion of the rumors to be used later.
Stage 4: Actual Shorting
The shorts step in selling on every possible up tick. This is the Reverse of front loading. Preparations are made to attack the guy who had earlier written positively about the company and take out, discredit, any new long-term champions or messengers.
Stage 5: Distortion Campaign
The shorts step in and increase selling on every possible up tick. Just as with the pump, newsletters, e-mail, PR firms against P & D, etc. are simulated. Expertise in the field is recruited for credibility. Any possible twist using POS (Purposely Omitted Syntax) and PAS (Purposely Added Syntax) is conveniently used on every possible angle. If the POS/PAS is discovered then attack the messenger. Above all control the message boards.
The group clutters the message boards so no positive information can be readily found. Justification is the Value of the Company in the market. Projections of $0.00 worth and loss projections of 100%
Note: The market manipulator will do everything in his/her power to keep buyers OUT OF THE STOCK. Cut your losses is touted to stimulate fear. You bought higher but now they need you to sell lower.
Stage 6: Pressure
The shorts have taken it too far. The volume is increasing and the price is not effectively dropping. A stalemate occurs. Personal attacks increase. Threats of legal action, SEC involvement, and yes even death threats increase. Increased secret IDs are employed to increase the cluttering, personal attacks and the distortion. So begins a string of lies that run for as long as one's stomach can take it. Desperately playing on the "you have been had" scenario. Any new news will be hit it hard by shorters to kill any interest.
Note: Watch the volume not the share price. A market manipulator will have various brokers buying and selling the stock to give the APPEARANCE of increasing volume but the price goes down. Thus stimulating the story the company is selling or an off shore reg S or other convenient scenario. Watch for large blocks that show up but have a MM special code, cross overs, etc.
Stage 7: The Cover
Without warning the buying pressure is too much and the short begins to cover. Short covering combined with new investors buying into the stock causes the stock to go up. Often the whole thing starts again. Just a vicious cycle sometimes.
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Note: Pump & Dump schemes I have seen are investigated by the SEC most of the time, however the Short & Distort scheme is not apparently high on the SEC's agenda. The shorts, unlike the dumper though, has an unlimited loss factor should the stock price go up.
Most traders have heard and read of the Pump & Dump scheme. But very little has been written about the other side of the trade or its opposite, which is the Short & Distort.
Now lets take the Short & Distort scheme and apply it to the rules of Pump & Dump for stock manipulators.
In order to make these market manipulations work, the professionals assume:
(a) The Public is STUPID and
(b) The Public will mainly buy at the HIGH and
(c) The Public will sell at the LOW.
Therefore, as long as the market manipulator can run crowd control , he can be successful in his agenda of stock manipulation by controlling the market's greed and fear.
(post courtesy of GVInvestments )
(re-posted by 4kids )
Posted On: 06/23/2012 1:21:13 PM ( Posted By: MaxShockeR )
http://investorshangout.com/post/view?id=61870
Every poster who is compensated for posting should disclose compensation or be subject to prosecution imho. Every single one! (posted by AlanC )
Also the regulators doesn't seem to realise their is this type of activity or they are just ignoring it ?
IMO ...any compensated post should have a DISCLAIMER and we " THE RETAIL INVESTORS " see their is the opposite side of " PROMOTERS " aka " DEMOTERS " that are compensated but no disclosure is seen, per SEC Laws = " STOCK Manipulation ".
JMHO