Manipulation of price, a criminal, regulatory (if the regulator cares to regulate) and commercial crime of fraud subject to civil litigation and criminal law is today the major means of what funds consider trading. It is not trading but rather criminal activity with both criminal and civil law remedies. It takes the form today primarily of pool short selling or naked short selling as a civil and criminal conspiracy to defraud.
Manipulation is both on the short as well as long side. It does not matter if the direction is welcome to you, both up and down is the practice of market sociopaths. Now it is most prominent as a pounding pool short selling conspiracy, making offerings not to trade but to scare buyers and late hour or after hour computer trades where you trade with two different names – a camouflaged trading scheme with yourself.
Let’s look at a few common sense rules:
1. No one throws money away on purpose. No one sells large blocks of shares at deep discounts off the price of closing on one exchange or another. Usually a computerized trading platform is the single manipulator, trading with himself via the conspiracy of another called “Pool Short Selling" or "Parking.”
This can occur when a situation is running hard towards the old high with a big illegal short interest attempting to save itself.
It can also occur when a major interest is a buyer who sells in a most disorderly manner to shake out some weak longs that have followed in the footpath of the buyer buying now in front of the major interest.
This is called “Shaking the Tree.”
2. Generally in the commodity world, certainly in gold and silver, the ‘Bombastic Bastards” enter the market. These traders enter the market generally with the same intentions as number one, committing the same crimes as number one that are subject to civil, regulatory (if there are any or any willing to enforce them) and criminal remedies.
Equity traders they are somewhat more sophisticated in the sense that these dastardly cowards hide behind the bushes operating from the shadows for what they think is security in their misbehaviour.
First the Bombastic Bastards take their position, such as selling into a rising market that is stretched out. Now enters the BBs hitting all the small bids. As the buyers begin to fade, they offer huge amounts knowing there are no buyers.
As a result the price wilt or vaults to their advantage. The civil, regulatory and criminal event here is to move a price without taking real risk, as there is never any intention of selling the large amount offered. It is proved by same similar patterns over time.
3. The final is dirty tricks. You remember the hatchet job that was done on Royal Gold. You also remember how low it got and how high it went after that. I have always believed that RGLD has an $80 target on it. I believed that then and now.
Let me tell you about another dirty trick.
Say we exaggerated beyond belief the cost of mining for a company trying to color an entire area the same.
Cash costs of mining today is plus or minus the profit or expense of the short of gold derivative taken for that exact project.
International GAAP now demands that the short of product derivative taken must be identified when taken to the project for which it is taken. Then the profit or loss of the short of product derivative must be credited or debited to the appropriate project DIRECTLY.
To falsely define a social or political event as it applies to a company is another manipulative supporting strategy. When a company has a problem with the locals in a country known for its friendly and welcoming behaviors, you can be sure that company did something really bad and deserves it. The key here is EXAGGERATE.
This is common to anti global, anti corporate, pro-socialism organizations and follows the same exact script from one exaggeration to the next exaggeration.
I know, as I was Chairman of Sutton Resources and Kahama Mining when such an alleged event occurred. You can review that by reading the publication, “The Men Who Moil for Gold” found on the net at the site of the University of Toronto publications.
What the paid NG) (Non-Government organization) anti globalism organizations do is multiply the number of people and damages, all with a splash of violence for color. Next the manipulator using the NGO gets a paid friend to get the nonexistent or grossly exaggerated story on a wire service or into some publication to benefit the manipulator’s position.
This is known as “Dirty Tricks.”
Know that the long side manipulator is as much a criminal as is the short side manipulator. To say otherwise is to prostitute my principles.