Re: Short interest explodes higher, to 841,500
posted on
Jun 20, 2017 09:36PM
Thanks GolfYeti....its nice engaging in discussion with someone who gets it. I think that anyone playing highly speculative stocks (which is most of them) that they should be required to watch that webcast interview Cramer did 10+ years ago for thestreet.com, here's the link for probably the 10th time:
Of special note is the tactics he would employ when he needed to drive a stock price lower....he talks of taking out bidders by hitting and offering..."I'd hit and offer, hit and offer, hit and offer". Basically selling to pretty much everyone looking to buy, all while making even more shares available on the ask side. He uses the word "foment" which simply means a manipulation designed to create a false impression of the market.....trying to make a stock that he needs down, make it "appear" to be weak.
To toss in a little comic levity, its basically what Bart does on the day he skips off school.....fomenting an impression that the bank in insolvent and thus creating a run:
While Cramer is talking about the RIMs, the Apples etc of the market.....saying he might need to commit maybe $15 or $20 million to knock it down....don't think for a second that these tactics aren't used on smaller companies like Resverlogix, although obviously it doesn't take as much cash. And Cramer didn't invent this stuff, although he talks like he does....manipulative games have been played since the first butcher put his thumb on a scale.
Sadly people do get hurt....but manipulators assauge any guilt they might feel by rationalizing their actions with the realization that they're simply taking advantage of people's greed. And that's the important take away here imo.....there are people who will risk a mortgage payment, the kid's college fund, money that is needed that they can't afford to lose.
When going up against a rich bully (or bullies as the case may be) in the market it is essential to stay within one's tolerance for risk, not putting money in play that you will need or can't afford to lose.