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Thread: Market Manipulation: TheStreet.com Interview

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    Default Market Manipulation: TheStreet.com Interview

    An interesting extract from Wikipedia:

    "In March 2007, a December 2006 interview from TheStreet.com's "Wall Street Confidential" webcast stirred controversy after it appeared on YouTube.com. In the video, Cramer described activities used by hedge fund managers to manipulate stock prices; some illegal and some debatably legal.[18] He described how he could push stocks higher or lower with as little as $5 million in capital when he was running his hedge fund. Cramer said, "A lot of times when I was short, I would create a level of activity beforehand that would drive the futures." He also encouraged hedge funds to engage in this type of activity because it is "a very quick way to make money." Cramer claimed that everything he did was legal, but that illegal activity is common in the hedge fund industry. He also stated that some hedge fund managers spread false rumors to drive a stock down: " ...it's important to create a new truth, to develop a fiction."[19] Cramer said one strategy to keep a stock price down is to spread negative rumors to reporters he described as "the Pisanis of the world". "You have to use these guys," said Cramer. He also discussed getting "the bozo reporter from The Wall Street Journal" to publish a negative article.[20] Cramer said this practice, although illegal, is easy to do "because the SEC doesn't understand it."

    Does anyone have anything else to share about this topic? And how does one protect him/herself from being a victim of the hedge funds manipulations?

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    God/dess britneyireland's Avatar
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    Default Re: Market Manipulation: TheStreet.com Interview

    Look at the intra-day charts. It's obvious. Protect yourself with carefully planned entry and exit points for each trade. Don't listen to the news. The charts don't lie. EVERYTHING is reflected in Price and Volume (although I like to use the MACD, Stocastic, Chaikin Money Flow, ACC Distribution Current and On Balance Volume oscillators too)

    Why do you think Kramer tells people to "stop trading?" So they can buy all the shares he's dumping at an inflated price. And so they'll go buy his book, call into his show, and pad the salary he commands on CNBC and the college circuit.

    Traders aren't vicitimized because they watch the intraday charts and jump into a trade when they see the explosive volume at a pivot point (either support or resistance)
    Rebecca Avalon







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    Banned Katrine's Avatar
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    Default Re: Market Manipulation: TheStreet.com Interview

    I watched this interview a long time ago. Its pretty funny. But no suprise.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

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