it's not about Jordan...house 69...the house number to watch is 99...Jitney...that's the one the market makers are running the market through...look at their 5-day transactions summary..and learn what jitney means
What Does JitneyMean? - A situation in which one broker who has direct access to a stock exchange performs trades for a broker who does not have access.
- A fraudulent activity in the penny stock market involving two brokers trading a stock back and forth to rack up commissions and give the impression of trading volume.
THE JITNEY GAME
By George Chelekis
Do you ever wonder about these small cap stocks that post a tiny bit ofvolume and thenjust climb and climb? One minute the
stock is trading for C$1.33 and with very little volume runs to C$2.50.Amazing? Not atall. It is the jitney game at work. This
practice is SO pervasive in the small cap market that I thought youshould know about it.Otherwise, you'll get trapped in the
jitney game and lose a bundle. There are many depths to it andvariations on it.
One has to look to the Oxford English Dictionary (unabridged) to clearlyunderstand thisword. "Jitney" was coined by The
Nation, a US magazine, on November 28, 1914, referring to the Fordmotorbuses, which begancompeting that autumn with
the horsedrawn streetcars in New York City. That reporter drew this termfrom the slanguse, referring to the five-cent piece it
then cost for a bus ride. They were called "Jitney buses." It was usedderogatorily toward those buses and has since been used
with the idea that something is cheaply and poorly made. (There is also aracialunderlying tone to this word, as it once referred
to the American black, who was regionally called "a jit." Jitney evolvedfromjit, again used to denigrate another race.)
When I find a difficulty in locating an appropriate dictionarydefinition of a word, it isbecause that word, and especially the
practice, is supposed to remain a secret, cult-like, to a few. Themasses aren't supposedto know about the activity which that
word defines. For instance, try finding a definition for the word,spiff. Not easy, huh?You'll come up with "to polish up" or "to
spruce up" or something like that. But, did you know that "spiff" meansanunreported "kickback" or "payoff" to a salesman,
especially a telemarketer, in addition to their normal commission. It'susually a rewardsales managers pay their salespeople
after they hook a certain number of suckers to buy the company's productor service.
Jitney is the game brokers and traders play among each other, especiallyin the westernCanadian stock exchanges. But it is not
limited to just Vancouver and Alberta. It is used throughout the entiresmall cap stockmarket. My first contact with this word
was when I overheard a broker saying, "We can jitney that stock over to afew otherbrokers I know, at other houses, and that
way no one will know who sold it."
Cute, huh?
That is how the brokerage community and insiders often work. Hand inhand. There are evensome brokerage firms, start-ups,
which are known as "jitney houses." Their principals and brokers arequite eagerto run business through their houses and rack
up commissions on buying and selling of stock. There are even certainbrokers who fooltheir own houses and rack up
enormous commissions by running their stock purchases and disposals,around in circles,via a series of offshore trading
accounts, which they own. An enormous amount of volume can be created inthis way, withoutanyone really understanding
what is going on.
Far more brokers are involved in the jitneying process than you canimagine. It is quietlyand secretly done amongst themselves.
It is frequently done every day. One of the deceptions is that itcreates an appearancethat there is activity in the stock. It is not
uncommon for an insider to buy and sell 500 to 2000 shares of stockevery day or everyweek, just to show activity. Some do
this on Fridays, just so their companies name won't appear in the"Inactive"section of the newspapers. Whenever you see a
stock that has been trading very low volume, it means that no one isreally buying andselling stock in this company, but that
someone is trying to make it look like activity is afoot. It is only anillusion.
That illusion is created simply to suck you in. Just like hype andpromotion, which createa whirlwind of trading volume and a
price rise, is designed to suck you into the stock, the jitney gameweaves its magic on aless dramatic and surreptitious level.
The results are the same when the stock is going up. Please realizethere is a differencebetween a stock which insiders buy and
sell, on a small scale, just to show "life," as opposed to a stock whichisbeing jitneyed about, from house to house, with
gap-ups.
The gap-up, during the jitney process, can usually be accomplished with20,000 to 50,000shares traded every day. The
unscrupulous insider just places buy orders, on an inactive stock,through various houses,paying more and more for his own
stock with each new buy order. Very few, if any, sell orders come intothe market. Now,this has to be done with the tacit
cooperation of the professional traders or they would fight his buyorders and stamp outany potential upward movement.
As soon as the stock makes its "run" to a higher level, and realinvestors comeinto the market, what do you think the insider
does? He sells what he just bought. If it is done very well, the insiderwill issue a newsrelease, pumping up the stock to an even
higher level. Then, he unloads his entire recent purchase into thestrength of the tradingvolume. If he is very, very good, he
jitneys his stock way up, does a massive promo push, and then dumps ahuge load of hispaper into the market.
Thought you'd love this essay. Funny that the term, jitney, also refersto small, cheapboats that move cargo across small water
crossings. The shoe fits again in referring to the type of people whoplay this game.Watch the jitney game in operation
sometime. Look back over some of the stocks you've bought -- the onesthat popped up abit, just before a promo push. Darn
if it wasn't the jitney game being played by a master.