Specialist Manipulation of Individual Stocks And MarketsA Question Of Fact Or Fiction?
In my opinion the market place as a hole andindividual stocks in general are under heavyaccumulation by the specialist system andmore importantly by individual specialists.The problem I have with this is the fact thatindividual investors continue to sit on their hands and watch as specialists continuallyand consistently rob their hard earned moneyfrom their financial accounts. Investors are stillunder the belief that the stock market is an“Auction Market”, driven by their buying andselling of individual stocks and mutual fundsthat they invest in. Nothing could be further from the truth.For the entire 20
th
and start of the 21
st
centuries specialists have exerted their controlover the market place creating the booms andbusts of market cycles. If you don’t believe thisask yourself the following questions,
during theGreat Depression of the 1920’s and early 1930’s asindividual investors and corporations were wipedout how is it that specialists made massive profitsfor themselves and their corporations?
Also,
why is it that during every major recessionthat this stock market has weathered in the last 100plus years those same specialists have madeexorbitant profits
? And most importantly
why is itduring the market crashes of 1963, 1987, and 1998specialists made record profits for themselves andtheir companies at the expense of investors?
The answer is simple; investors don’tunderstand how the market place works.When they
invest in a stock and they make arare profit they are overjoyed with their success. When they lose money on a stocktheir broker simply tells them they made apoor investment choice and moves on.Specialists are able to continually cheatinvestors of their profits by hitting them with athree-pronged attack. These three levels of attack are as follows, the use of the “
media
” tocontrol investor’s insights and knowledge of the market place and individual stocks. The
Federal Reserve
and its control interest ratesand money supply for both corporations andindividual investors. And finally the specialists’use of his “
short sale
” to control market andstock tops and his “short covering” toaccumulate stock and stop market declines attheir cumulative lows.Now you ask yourself how is this all possible,well the answers are simple, when one hasbeen indoctrinated from the time he or she haslearned how to handle money in the wrongmanner, it is virtually impossible to make theproper decisions when buying and sellingstock.All of the information that the individualinvestor receives, whether via the internet, hismorning stock pages, or via the electronicnews media, (IE) TV and cable networks isgenerated on the 14
th
floor of the New YorkStock Exchange. The Exchange fabricates allof the information about stocks prices, splits,mergers, scandals and potential failures. It istherefore impossible to get the proper information from them to make the educatedinvestment decisions necessary to besuccessful in the market place.They are also used to continually inundate theinvestor with shaded information when itcomes time for them to either enter of leavethe market place. As stocks are reaching their collective all time highs and investors shouldbe selling out to prepare for the imminentdecline, but instead they are coerced intostaying into the market place and buying morestock at these inflated highs as specialists andmarket and Exchange insiders are themselvesleaving the market place.The same can be said as the marketsapproach their collective bottoms. As investorsshould be considering buying more stock astheir issues move down they are again
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