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Re: TOB post# 17168

Wednesday, 08/13/2014 9:45:28 AM

Wednesday, August 13, 2014 9:45:28 AM

Post# of 724272
TOB said;

Anyone who knew what would come would have established their position prior to the article. There was ample time for this, and tweets that foreshadowed an article. The only question was when exactly.

It is useless for a short to jump in 5 minutes later when most of the decline was over, stopping in the next bar 6 minutes later. That is classic panic selling and stop triggering.

A short would initiate his position at a higher price, earlier.



I would disagree with your interpretation. You are assuming we think people on the short jumped on for a quick profit, I think that someone dumped enough shares to eat up the bid to a substantially lower level hoping that the pshycological effect of the article and price drop would trigger real stop losses much lower. The shorts had their positions well before that.

I suggest you watch this youtube video
where Cramer describes every tactic including selling at great losses to affect the perception and market price of stocks. He also details how the media is used in this game...as someone said the SEC is spineless to the RICH.
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