Alto Ingredients Inc (ALTO)

[Rule_62]

You're expecting a rational, unmanipulated market.

The fact that most people trading ethanol stocks don't even know the price of corn (let alone how to calculate a production margin) leaves the stock wide open for manipulation and herd mentality.

Twice this week we've seen herd mentality on the heels of manipulative headlines. The first one was all about ethanol production increasing, while totally ignoring export demand. The second presented today's news with a real spin, suggesting that the bottom just fell out of the ethanol market when the exact opposite it true. Once that reaction happens, the manipulators move in and keep it churning, looking to scalp off both ends of the reaction. Naked short and sell into the drop, then cover and go long at the bottom when they can't force it down any more.

The market is not rational in the short term. It's emotional, and it can take something out of context and run with it, while the big players in the background sit back and make a killing. It's like a lovers quarrel. The market gets so caught up and emotionally bent out of shape on one phrase or sentence that it completely loses sight of sanity. The pros with big money know how to play that like a fiddle.