Wolverine Resources Corp (WOLV)

[Cee-It]

There's a known pattern for a trap that is used by some hedge funds and other large traders when they want to accumulate. It takes a least two players often there are many more. It works best during a period of no major NEWS. It is perfect when the BUY is thin and drops off rapidly. The ASK can be many together or a thinly spread few without much difference in the impact on results.

Say I found a good XYZ company like this and wanted to buy as much of XYZ as possible, and XYZ is a thin float small cap.

Player1 posts a small, but nice, BID just above the BID but substantially below the ASK (not unusual under the circumstances of the scenario).

Player2 immediately sells to Player1 and offers (asks TO SELL) slightly more than the number of shares Player1 wanted (enough shares to establish a new low ASK).

Player1 then soon posts another BID just above any good BID but well below the new ASK.

Player2 again immediately sells to Player1 and offers slightly more than the number of shares (establishing again a new low ASK).

Repeat once or two more times and the retail market starts to get very nervous and a few holders decide to sell and take their gains or losses. It looks like the price is dropping very fast and support is dropping as well. It works better when they are still taking Gains by selling into the drop. Of course the ASK is dropping now quite a bit and more and more shares are offered. It appears there is BULL capitulation BIG TIME.

Player1 then immediately BUYS up tha ASKS up to the level where he has all he wants plus enough to return the favor to Player2. Meanwhile Player2 also becomes a BUYER and between the two of them they push the price back up to a level well above the starting point and then take some profits to lower their overall pps even further.

The playes later settle the balance of their score in another small cap with a similar scenario but in a way that favors the one who made the least in the first scenario.

What's it take? Public company with a reasonably good outlook (not a scam and not totally a big risk... preferably a developing businss) but a low pps and small float. Period of relative inactivity (like developing but not yet producing) and lack of recent good news. Is it happening? IMO - probably here, also in NBRI perhaps, and on a larger scale (bigger dollars) in PSTI, PAL and a few others.

A similar technique seems to be emerging to kill what should normally become a very big rally for a smallcap stock that has announced good news; and then later, the Seller will let it go up big time (maybe even help to start it upwards).

Strategy scenarios with software for guidance plus constant chart updating are part of the key for making it work.

Well Ripley, do we BELIEVE IT or NOT?

The really large hedge funds can play the same reverse logic on bigger targets and while the stakes become large, and a slight mistake can be devastating, the rewards are tempting and greed is king.