As I said,Naked Shorts don't control the SP but are a part of the mix.They need the cooperation of other parties to work their scheme.MM's,hedge funds etc.They may not control the price but they were instrumental in getting us where we are now.
Read the short article below and then pull up the chart at the bottom.
Although Naked Shorting isn't traceable,following the FTD's is a pretty good indicator of it happening as you will see from these two links.
From StockShortData.com
http://stockshortdata.com/2010/12/23/could-na...sirius-xm/
"
"I just knew that headline would grab your attention, and believe it or not I’m going to be making a bullish case based entirely on the naked short selling that sent Sirius XM Radio shares to their all time lows nearly two years ago. The potentially bullish case stems from the fact that Sirius XM did not just survive, it has since excelled and the future looks to be even brighter.
To understand what this could mean to investors going forward, we first need to understand what has already occurred. It is clear based on recent comments that there continues to be a fundamental lack of understanding of what naked short selling is. Simply put, Naked short selling is the counterfeiting of “electronic” stock certificates, which are then sold as if they were real stock certificates.
Because trading occurs so rapidly and in such large volumes, the only way to know whether or not you actually own any stock is to take possession of the certificates. If everyone were to do this simultaneously, you just might be one of the people that finds you have been ripped off. It’s like a game of musical chairs, with more shares being sold than actually exist. Take a look at the chart below from July of 2008. As you can see, over $553 million worth of Sirius XM shares were illegally counterfeited and sold short in just this one particular month. {{{membership}}}
data courtesy of deep capture
As I reported earlier this week, Overstock.com through legal process has uncovered a specific scheme developed by Wall Street heavy-weights Goldman Sachs and Merrill Lynch to game the system through the use of naked short selling. I have been stuck on the word “scheme” for several days, as it suggests a well thought out plan for execution, and it follows that contingency plans must have also been in place for dealing with various scenarios that could develop.
My limited understanding of how naked short selling works is this. First you sell the counterfeit electronic shares. In Sirius XM’s case, a large debt obligation was looming early in the following year. By driving the price of the stock down, Sirius XM would not be able to tap the equity markets to fund a large debt payment that was coming due the following February. Charles Ergen of DISH Network was secretly accumulating that specific debt with the help of Goldman Sachs.
In driving the company to bankruptcy, those electronically counterfeited shares would never have to be covered. they would just register as paper gains on the books of those that had effected the naked short selling. Without covering, there is no taxable event and as such, the maked short selling remains untraceable. The question then that must have been asked is, what if the targeted company doesnt go bankrupt? What if a white knight such as Liberty Capital bails out the target of this scheme?
This is where it gets good. Those shares are more likely than not still short and still outstanding. With every increase in the price of Sirius XM, the large paper gains recorded begin to fall as sharply as they rose. Shares cannot be covered at that level without creating a taxable, and traceable event. With the threat of naked short selling prosecution and regulatory changes having taken place, the miscreants cannot take a chance on taking their ill gotten gains. What might the scheme have allowed for in such an instance?
The answer is surprisingly simple. In order to lock in those gains, the outlaws would simply need to have established a new long position near the bottom. As the long position rises in value, it offsets the losses now being accumulated on the gains made on the illegal naked short positions. The long position can then be used to cover the naked short position. Another win-win for Wall Street!
This is where the bullish scenario comes into play. You will notice that the prices in July 2008 as represented in the chart above, are now well within range of Sirius XM’s current price. In actuality, the illegal naked short selling began at even higher equity prices. Even those that just followed the herd may simply be looking to close out the position once break-even occurs, possibly deciding to just accept the fact that the plan did not work in Sirius XM’s case.
We may be looking at a short squeeze of epic proportions. Bear in mind that this is highly speculative, in that we still do not have the details of exactly how the scheme was to work. It is based primarily on my own experience and observations over the years. I can only assume the scheme has not reached a conclusion thus far in the case of Sirius XM Radio, but it appears that what goes down, now must go up."
Also go here and plug in CTIX and watch what happens.
Kelt
Failure to deliver chart for CTIX before the name change:
http://failstodeliver.com/default.aspx
Read the short article below and then pull up the chart at the bottom.
Although Naked Shorting isn't traceable,following the FTD's is a pretty good indicator of it happening as you will see from these two links.
From StockShortData.com
http://stockshortdata.com/2010/12/23/could-na...sirius-xm/
"
"I just knew that headline would grab your attention, and believe it or not I’m going to be making a bullish case based entirely on the naked short selling that sent Sirius XM Radio shares to their all time lows nearly two years ago. The potentially bullish case stems from the fact that Sirius XM did not just survive, it has since excelled and the future looks to be even brighter.
To understand what this could mean to investors going forward, we first need to understand what has already occurred. It is clear based on recent comments that there continues to be a fundamental lack of understanding of what naked short selling is. Simply put, Naked short selling is the counterfeiting of “electronic” stock certificates, which are then sold as if they were real stock certificates.
Because trading occurs so rapidly and in such large volumes, the only way to know whether or not you actually own any stock is to take possession of the certificates. If everyone were to do this simultaneously, you just might be one of the people that finds you have been ripped off. It’s like a game of musical chairs, with more shares being sold than actually exist. Take a look at the chart below from July of 2008. As you can see, over $553 million worth of Sirius XM shares were illegally counterfeited and sold short in just this one particular month. {{{membership}}}
data courtesy of deep capture
As I reported earlier this week, Overstock.com through legal process has uncovered a specific scheme developed by Wall Street heavy-weights Goldman Sachs and Merrill Lynch to game the system through the use of naked short selling. I have been stuck on the word “scheme” for several days, as it suggests a well thought out plan for execution, and it follows that contingency plans must have also been in place for dealing with various scenarios that could develop.
My limited understanding of how naked short selling works is this. First you sell the counterfeit electronic shares. In Sirius XM’s case, a large debt obligation was looming early in the following year. By driving the price of the stock down, Sirius XM would not be able to tap the equity markets to fund a large debt payment that was coming due the following February. Charles Ergen of DISH Network was secretly accumulating that specific debt with the help of Goldman Sachs.
In driving the company to bankruptcy, those electronically counterfeited shares would never have to be covered. they would just register as paper gains on the books of those that had effected the naked short selling. Without covering, there is no taxable event and as such, the maked short selling remains untraceable. The question then that must have been asked is, what if the targeted company doesnt go bankrupt? What if a white knight such as Liberty Capital bails out the target of this scheme?
This is where it gets good. Those shares are more likely than not still short and still outstanding. With every increase in the price of Sirius XM, the large paper gains recorded begin to fall as sharply as they rose. Shares cannot be covered at that level without creating a taxable, and traceable event. With the threat of naked short selling prosecution and regulatory changes having taken place, the miscreants cannot take a chance on taking their ill gotten gains. What might the scheme have allowed for in such an instance?
The answer is surprisingly simple. In order to lock in those gains, the outlaws would simply need to have established a new long position near the bottom. As the long position rises in value, it offsets the losses now being accumulated on the gains made on the illegal naked short positions. The long position can then be used to cover the naked short position. Another win-win for Wall Street!
This is where the bullish scenario comes into play. You will notice that the prices in July 2008 as represented in the chart above, are now well within range of Sirius XM’s current price. In actuality, the illegal naked short selling began at even higher equity prices. Even those that just followed the herd may simply be looking to close out the position once break-even occurs, possibly deciding to just accept the fact that the plan did not work in Sirius XM’s case.
We may be looking at a short squeeze of epic proportions. Bear in mind that this is highly speculative, in that we still do not have the details of exactly how the scheme was to work. It is based primarily on my own experience and observations over the years. I can only assume the scheme has not reached a conclusion thus far in the case of Sirius XM Radio, but it appears that what goes down, now must go up."
Also go here and plug in CTIX and watch what happens.
Kelt
Failure to deliver chart for CTIX before the name change:
http://failstodeliver.com/default.aspx
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