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caltrader

06/11/10 11:14 AM

#132985 RE: kando #132981

A few posts of Bluebucks to re-read.

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Perception vs. Reality-Part 4-Recovery

For those who think destroying Market Makers is the prime directive allow me to redirect your attention. They will feel pain, yes, but eventually equalize their losses. The case I will refer to is EVCC stickied at the top. There are others but this should be familiar to most.

I have a different take on the chart. With all due respect to FF’s fine work & I am thankful for his presentations, I contend that the cover was stabilized @ $5.50. Not completed but only stabilized. Many shares were sucked up by the MM’s on route to $5 as people sold for a nice profit. From that point the MM’s are active to offset their huge loss.

The spike to $8 was actually a recovery. These new shares were making money as the rise from $5 to $8 occurred. Then, once reaching the specified & secret PPS , the stock is shorted once again as they make money all the way down the ladder & recovering another huge portion in the red. Once the squeeze has been diffused its back to business as usual.

Some wise folks on this board have correctly stated that the MM’s will be forced to go long. This is what they are referring to. Its for their benefit and not ours.

Its important to understand that at each leg up occurs what I call a “Bull Shake”. That’s really where MM’s find shares. People sell a small portion to pay bills etc. Then comes another grueling consolidation followed by another leg up producing another bullshake. One signal to recognize is low volume days become the norm. New purchases are held up even at numbers over the ask. Brokerage houses put a “buying stop” on the stock. Only sells are allowed. At this point they have curtailed shorting & begin the recovery mode.

Monks premise is simple & accurate: Buy & Hold... They can limit us in purchases but they cannot stop us from holding. Some of you have mentioned $2-3*** as a selling start. Exactly my point. Not that it’s a bad thing, by all means make a profit. Using our example, MM’s will then sell those shares for $6,7,8 during recovery.

The idea of destroying a MM is nonsense. They have more tools than just Level 3 & a wealth of knowledge in the manipulation of numbers. The $30 million shorted is already in their banks collecting interest or being used to deceive in other areas. As long as it is possible continue to buy wherever shares are sold. Let them know our funds cannot be exhausted & that at some point even the chart begins to look abnormal. That my friends could attract a congressman or two.... Hit the Ask..

*** MY EDIT: I think that given the time frame and size of the team that these price estimates are much higher now.

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The Big Leagues

The final Bear Trap should be likened to the forces of good destroying the forces of evil. Hopefully, we will all be out when that secret PPS is reached & bagholders are born destitute.
What will that last leg of the actual cover look like? Who will be there? The pressure will be enormous. The decision to get the most for your money weighed against waiting too long needs to be considered now while in a non crisis environment. When everyone’s portfolio is engorged with staggering numbers you will be confronted with the same trauma the MM’s are facing now. When to bail?
When you are selected from college ball to a “C” farm team your just excited to be paid for playing a game. In “B” leagues you realize the competition is pretty good. By the time you make it to “A” ball the coaches have so altered your thinking that you realize you didn’t know much back at the “C” level. You will need something special to make the big leagues & the big money. Boys will have matured into men with families & need more than minor league salary. Coaches can train you but only few will make it.
So it is with this play. You may never have another chance. If you say I will sell at $3 or $5 you inadvertently set the ceiling of the Bullshake (“B” league). You got out & made money and hey; profit is profit. If you say $20 then the ceiling is set there (“A” league). When a unified group finally gets this concept they will understand we do not have to sell at all.. Very important. With an uplist to the BB all shares must be accounted for. There will be a fake volume the size you have never witnessed. It is Knight’s way of saying “Can we negociate”. Now you have something special. “Excuse me... Let me call my agent.” That’s when we need to see large blocks of real shares at $30, $40 & $50 for sale at the ask.. Welcome to the S H O W... Blue
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Negotiations with the MMs: Now that we all recognize their presence here let's become business men & not say foolish things.. Blue