Source Unknown...
But worth the read (see below)for some insight on how the manipulators try to capitalise on our fears...
I believe that the current down trend is just another set-up for a huge leg up. AUN is no longer primarily a speculative play. Rather, it is now a fundamentals play... Numbers... Cash flow.
For the'weak ones' among us, do not forget this. For those who are much smarter than me and able to ride this manipulation game with the MMs(market manipulators) I appluade you...
I do not know the original source of this article, but it is generally consistent with my beliefs about how the markets work...
In the case of AUN, the MMs play with the price on the short-term to maximise their profits, while riding its longer-term upward trend...
And I do not blame them... Why only make X amount of money when you can make Q+R+S+T+U+V...+X amount of money? Me, I am happy with the X amount, i.e., the amount made on the upward trend a AUN becomes one of those rare companies that makes the transition from a purely speculative play to company of real value.
THE DEADLY ART OF STOCK MANIPULATION....
In every profession, there are probably a dozen or two major rules.
Knowing them cold is what separates the professional from the amateur.
Not knowing them at all? Well, let's put it this way: How safe would
you feel if you suddenly found yourself piloting (solo) a Boeing 747
as it were landing on an airstrip?
Unless you are a professional pilot, you would probably be frightened
out of your wits and would soil your underwear. Hold that thought as
you read this essay because I will explain to you how market
manipulation works. What the professionals and the securities
regulators know and understand, which the rest of us do not, is this.
"RULE NUMBER ONE: ALL SHARP PRICE MOVEMENTS -- WHETHER UP OR DOWN --
ARE THE RESULT OF ONE OR MORE (USUALLY A GROUP OF) PROFESSIONALS
MANIPULATING THE SHARE PRICE."
This should explain why a mining company finds something good and
"nothing happens" or the stock goes down. At the same time, for NO
apparent reason, a stock suddenly takes off for the sky! On little
volume! Someone is manipulating that stock, often with an unfounded
rumor. In order to make these market manipulations work, the
professionals assume: (a) The Public is STUPID and (b) The Public will
mainly buy at the HIGH and (c) The Public will sell at the LOW.
Therefore, as long as the market manipulator can run crowd control, he
can be successful. Let's face it: The reason you speculate in such
markets is that you are greedy AND optimistic. You believe in a better
tomorrow and NEED to make money quickly. It is this sentiment which is
exploited by the market manipulator. He controls YOUR greed and fear
about a particular stock. If he wants you to buy, the company's
prospects look like the next Microsoft. If the manipulator wants you
to desert the sinking ship, he suddenly becomes very guarded in his
remarks about the company, isn't around to glowingly answer questions
about the company and/or GETS issued very bad news about the company.
Which brings us to the next important rule.
"RULE NUMBER TWO: IF THE MARKET MANIPULATOR WANTS TO DISTRIBUTE (DUMP)
HIS SHARES, HE WILL START A GOOD NEWS PROMOTIONAL CAMPAIGN."
Ever wonder why a particular company is made to look like the greatest
thing since sliced bread? That sentiment is manufactured. Newsletter
writers are hired -- either secretly or not -- to cheerlead a stock.
PR firms are hired and let loose upon an unsuspecting public.
Contracts to appear on radio talk shows are signed and implemented.
Stockbrokers get "cheap" stock to recommend the company to their
"book" (that means YOU, the client in his book). An advertising
campaign is rolled out (television ads, newspaper ads, card deck
mailings). The company signs up to exhibit at "investment conferences"
and "gold shows" (mainly so they can get a little "podium time" to
hype you on their stock and tell you how "their company is really
different" and "not a stock promotion.") Funny little "hype" messages
are posted on Internet newsgroups by the same cast of usual suspects.
The more, the merrier. And a little "juice" can go a long way toward
running up the stock price. The HYPE is on. The more clever a stock
promoter, the better his knowledge of the advertising business. Little
gimmicks like "positioning" are used. Example: Make a completely
unknown company look warm and fuzzy and appealing to you by comparing
it to a recent success story, Diamond Fields or Bre-X Minerals. That
is the POSITIONING gospel, authored by Ries and Trout (famous for
"Avis: We Want To Be #1" and "We Try Harder" and other such slogans).
These advertising/PR executives must have stumbled onto this formula
after losing their shirts speculating in a few Canadian stock
promotions! The only reason you have been invited to this seemingly
incredible banquet is that YOU are the main course. After the market
manipulator has suckered you into "his investment," exchanging HIS
paper for YOUR cash, the walls begin to close in on you. Why is that?
"RULE NUMBER THREE: AS SOON AS THE MARKET MANIPULATOR HAS COMPLETED
HIS DISTRIBUTION (DUMPING) OF SHARES, HE WILL START A BAD NEWS OR NO
NEWS CAMPAIGN."
Your favorite home-run stock has just stalled or retreated a bit from
its high. Suddenly, there is a news VACUUM. Either NO news or BAD
rumors. I discovered this with quite a few stocks. I would get LOADS
of information and "hot tips." All of a sudden, my pipeline was
shut-off. Some companies would even issue a news release CONDEMNING me
("We don't need 'that kind of hype' referring to me!). Cute, huh? When
the company wanted fantastic hype circulated hither and yon, there
would be someone there to spoon-feed me. The second the distribution
phase was DONE....ooops! Sorry, no more news. Or, "I'm sorry. He's not
in the office." Or, "He won't be back until Monday." The really slick
market manipulators would even seed the Internet news groups or other
journalists to plant negative stories about that company. Or start a
propaganda campaign of negative rumors on all available communication
vehicles. Even hiring a "contrarian" or "special PR firm" to drive
down the price. Even hiring someone to attack the guy who had earlier
written glowingly about the company. (This is not a game for the
faint-hearted!) You'll also see the stock drifting endlessly. You may
even experience a helpless feeling, as if you were floating in outer
space without a lifeline. That is exactly HOW the market manipulator
wants you to feel. See Rule Number Five below. He may also be doing
this to avoid the severe disappointment of a "dry hole" or a "failed
deal." You'll hear that oft-cried refrain, "Oh well, that's the junior
minerals exploration business... very risky!" Or the oft-quoted
statistic, "Nine out of 10 businesses fail each year and this IS a
Venture Capital Startup stock exchange." Don't think it wasn't
contrived. If a geologist at a junior mining company wasn't optimistic
and rosy in his promise of exploration success, he would be replaced
by someone who was! Ditto for the high-tech deal, in a world awash
with PhD's. So, how do you know when you are being taken? Look again
at Rule #1. Inside that rule, a few other rules unfold which explain
how a stock price is manipulated.
"RULE NUMBER FOUR: ANY STOCK THAT TRADES HUGE VOLUME AT HIGHER PRICES
SIGNALS THE DISTRIBUTION PHASE."
When there was less volume, the price was lower. Professionals were
accumulating. After the price runs, the volume increases. The
professionals bought low and sold high. The amateurs bought high (and
will soon enough sell low). In older books about market manipulation
and stock promotion, which I've recently studied, the markup price
referred to THREE times higher than the floor. The floor is the
launchpad for the stock. For example, if one looks at the stock price
and finds a steady flatline on the stock's chart of around 10 cents,
then that range is the FLOOR. Basically, the markup phase can go as
high as the market manipulator is capable of taking it. From my
observations, a good markup should be able to run about five to ten
times higher than the floor, with six to seven being common. The
market manipulator will do everything in his power to keep you OUT OF
THE STOCK until the share price has been marked up by at least
two-three times, sometimes resorting to "shaking you out" until after
he has accumulated enough shares. Once the markup has begun, the stock
chart will show you one or more spikes in the volume -- all at much
higher prices (marked up by the manipulator, of course). That is
DISTRIBUTION and nothing else. Example: Look at Software Control
Systems (Alberta:XVN), in which I purchased shares after it had been
marked up five times. There were eight days of 500,000 (plus) shares
trading hands, with one day of 750,000 shares trading hands. Market
manipulator(s) dumping shares into the volume at higher prices.
WHENEVER you see HUGE volume after the stock has risen on a 75 degree
angle, the distribution phase has started and you are likely to be
buying in -- at or near the stock's peak price. Example: Look at
Diamond Fields (TSE:DFR), which never increased at a 75 degree angle
and did not have abnormal volume spikes, yet in less than two years
ran from C$4 to C$160/share. Example: Look at Bre-X Minerals
(Alberta:BXM), which did not experience its first 75 degree angle,
with huge volume until July 14th, 1995. The next two trading days, BXM
went down and stayed around C$12/share for two weeks. The volume had
been 60% higher nearly a month earlier, with only a slight price
increase. Each high volume and spectacular increase in BXM's share
price was met with a price retreat and leveling off. "Suddenly," BXM
wasn't trading at C$2/share; it was at C$170/share.... up 8500% in
less than a year! In both of the above cases, major Canadian
newspapers ran extremely negative stories about both companies, at one
time or another. In each instance, just before another share price run
up, retail investors fled the stock! Just before both began yet
another run up! Successful short-term speculators generally exit any
stock run up when the volume soars; amateurs get greedy and buy at
those points.
"RULE NUMBER FIVE: THE MARKET MANIPULATOR WILL ALWAYS TRY TO GET YOU
TO BUY AT THE HIGHEST, AND SELL AT THE LOWEST PRICE POSSIBLE."
Just as the manipulator will use every available means to invite you
to "the party," he will savagely and brutally drive you away from "his
stock" when he has fleeced you. The first falsehood you assume is that
the stock promoter WANTS you to make a bundle by investing in his
company. So begins a string of lies that run for as long as your
stomach can take it. You will get the first clue that "you have been
had" when the stock stalls at the higher level. Somehow, it ran out of
steam and you are not sure why. Well, it ran out of steam because the
market manipulator stopped running it up. It's over inflated and he
can't convince more people to buy. The volume dries up while the share
price seems to stall. LOOK AT THE TRADING VOLUME, NOT THE SHARE PRICE!
When earlier, there may have been 500,000 shares trading each day for
eight out of 12 trading days (as in the case of Software Control
Systems), now the volume has slipped to 100,000 shares (or so) daily.
There are some buyers there, enough for the manipulator to continue
dumping his paper, but only so long as he can enlist one or more
individuals/services to bang his drum. He may continue feeding the
promo guys a string of "promises" and "good news down the road."
(Believe me, this HAS happened to me!) But, when the news finally
arrives, the stock price goes THUD! This is entirely orchestraÿ Market
Manipulation Rules (cont.) Here are the other rules for post #6358. My
computer disconnected, so I went to bed. By the way, I don't claim to
be the author; source is unknown.
"RULE NUMBER SIX: IF THIS IS A REAL DEAL, THEN YOU ARE LIKELY TO BE
THE LAST PERSON TO BE NOTIFIED OR WILL BE DRIVEN OUT AT THE LOWER
PRICES."
Like Jesse Livermore wrote, "If there's some easy money lying around,
no one is going to force it into your pocket." The same concept can be
more clearly understood by watching the tape. When a market
manipulator wants you into his stock, you will hear LOUD noises of
stock promotion and hype. If you are "in the loop," you will be
bombarded from many directions. Similarly, if he wants you out of the
stock, then there will be orchestrated rumors being circulated,
rapid-fired at you again from many directions. Just as good news may
come to you in waves, so will bad news. You will see evidence of a
VERY sharp drop in the share price with HUGE volume. That is you and
your buddies running for the exits. If the deal is really for real,
the market manipulator wants to get ALL OF YOUR SHARES or as many as
he can... and at the lowest price he can. Whereas before, he wanted
you IN his market, so he could dump his shares to you at a higher
price, NOW when he sees that this deal IS for real, he wants to pay as
little as possible for those same shares... YOUR shares which he wants
to you part with, as quickly as possible. The market manipulator will
shake you out by DRIVING the price as low as he can. Just as in the
"accumulation" stage, he wants to keep everything as quiet as possible
so he can snap up as many of the shares for himself, he will NOW turn
down, or even turn off, the volume so he can repeat the accumulation
phase. In the mining business, there seems to always be another "area
play" around the corner. Just as Voisey's Bay drifted into oblivion,
during the fourth quarter of 1995 and early into 1996, the same Voisey
Bay "wannabees" began striking deals in Indonesia. Some even used new
corporate entities. Same crooks, different shingles. The accumulation
phase was TOP SECRET. The noise level was deadingly silent. As soon as
the insiders accumulated all their shares, they let YOU in on the
secret.
"RULE NUMBER SEVEN: CONVERSELY, YOU WILL OFTEN BE THE LAST TO KNOW
WHEN THIS DEAL SHOWS SIGNS OF FAILURE."
Twenty-twenty hindsight will often show you that there was a "little
stumble" in the share price, just as the "assays were delayed" or the
"deal didn't go through." Manipulators were peeling off their paper to
START the downslide. And ACCELERATE it. The quick slide down makes it
improbable for your getting out at more than what you originally paid
for the stock... and gives you a better reason for holding onto it "a
little longer" in case the price rebounds. Then, the drifting stage
begins and fear takes over. And unless you have serves of steel and
can afford to wait out the manipulator, you will more than likely end
up selling out at a cheap price. For the insider, marketmaker or
underwriter is obliged to buy back all of your paper in order to keep
his company alive and maintain control of it. The less he has to pay
for your paper, the lower his cost will be to commence his stock
promotion again... at some future date. Even if his company has no
prospects AT ALL, his "shell" of a company has some value (only in
that others might want to use that structure so they can run their own
stock promotion). So, the manipulator WILL buy back his paper. He just
wants to make sure that he pays as little for those shares as
possible.
"RULE NUMBER EIGHT: THE MARKET MANIPULATOR WILL COMPEL YOU INTO THE
STOCK SO THAT YOU DRIVE UP ITS PRICE SHARES."
Placing a Market Order or Pre-Market Order is an amateur's mistake,
typifying the US investor -- one who assumes that thinly traded issues
are the same as blue chip stocks, to which they are accustomed. A
market manipulator (traders included here) can jack up the share price
during your market order and bring you back a confirmation at some
preposterous level. The Market Manipulator will use the "tape" against
you. He will keep buying up his own paper to keep you reaching for a
higher price. He will get in line ahead of you to buy all the shares
at the current price and force you to pay MORE for those shares. He
will tease you and MAKE you reach for the higher price so you "won't
miss out." Miss out on what? Getting your head chopped off, that's
what! One can avoid market manipulation by not buying during the huge
price spikes and abnormal trading volumes, also known as chasing the
stock to a higher price.
"RULE NUMBER NINE: THE MARKET MANIPULATOR IS WELL AWARE OF THE
EMOTIONS YOU ARE EXPERIENCING DURING A RUN UP AND A COLLAPSE AND WILL
PLAY YOUR EMOTIONS LIKE A PIANO."
During the run up, you WILL have a rush of greed which compels you to
run into the stock. During the collapse, you WILL have a fear that you
will lose everything... so you will rush to exit. See how simple it is
and how clear a bell it strikes? Don't think this formula isn't
tattooed inside the mind of every manipulator. The market manipulator
will play you on the way up and play you on the way down. If he does
it very well, he will make it look like someone else's fault that you
lost money! Promise to fill up your wallet? You'll rush into the
stock. Scare you into losing every penny you have in that stock?
You'll run away screaming with horror! And vow to NEVER, ever
speculate in such stocks again. But many of you still do.... The
manipulator even knows how to bring you back for yet another play.
What actors! No wonder Vancouver is sometimes called "Hollywood
North."
"FINAL RULE: A NEW BATCH OF SUCKERS ARE BORN WITH EVERY NEW PLAY."
The Financial Markets are a Cruel, Unkind and Dangerous Playing Field,
one place where the newest amateurs are generally fleeced the most
brutally.... usually by those who KNOW the above rules. Just as I have
a duty to ensure that each of you understand how this game is played,
YOU now have that same duty to guarantee that your fellow speculator
understands these rules. Just as I would be a criminal for not making
this data known to you, YOU would be just as criminal to keep it a
secret. There will always be an unsuspecting, trusting fool whom the
rabid dogs will tear to shreds, but it does NOT have to be this way.
IF every subscriber made this essay broadly known to his friends,
acquaintances and family, and they passed it on to their friends, word
of mouth could cause many of these market manipulators to pause. IF
this effort were done strenuously by many, then perhaps the financial
markets could weed out the crooked manipulators and the promoters
could bring us more legitimate plays. The stock markets are a
financing tool. The companies BORROW money from you, when you invest
or speculate in their companies. They want their share price going
higher so they can finance their deal with less dilution of their
shares... if they are good guys. But, how would you feel about a
friend or family member who kept borrowing money from you and never
repaid it? That would be theft, plain and simple. So, a market
manipulator is STEALING your money.