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Thursday, 07/07/2011 2:10:12 PM

Thursday, July 07, 2011 2:10:12 PM

Post# of 312019
You have to ask yourself what is the source of the volatility?

Is it real shares changing hands, or is it MM's and hedgies trading air shares and fleecing suckers and newbies?

I think the volatility comes from the latter and that's why we need to uplist, to cut down on the gaming with the stock price.

If this is true, the real danger to the retail trader is that big boys are pulling strings, TA doesn't really apply because volatility is manufactured, and the trend can be reversed on the whim of a computer program when enough suckers are reeled in.

For example, let's say that the real trading level of JBII right now was $3.50. At that price there are a few real sellers taking profits and a few real buyers. Let's say that the big boys ran it to $4.20 with air shares and wash trading, then they shorted it down hard to $2.50 to take profits on all of those air shares. In the mean time the investors are just sitting there with their $3.50 shares, happy with their huge gains.

With this scenario not a single real share has changed hands, but running the stock up and back down has separated a lot of retail folks from their money.

As real shares are absorbed by JBII longs and true volatility drops, trading JBII becomes riskier because the trading action is controlled by the man behind the curtain.