Hey SEC, Punish Stock Manipulators Like CNBC Not Small-Time Traders
There’ll come a time when the SEC will do away with absurdities like the pattern day trader rule in favor of holding accountable entertainment-masquerading-as-reality outfits (WWE, CNBC, WSJ etc.) and their pseudo-champions (The Rock, Cramer, Journalists, etc.) for the damage their charade causes…but it is not this day.
For now, you must learn to profit from the circus that is the financial media industry…case in point, the CNBC-caused morning spike in (AGEN). After a brief TV mention and naively optimistic online article, thousands of CNBC-faithful bought in, thinking the cancer news (on which the stock was only up 20% on the day beforehand, aka not big news) was big-time.
An hour later with the stock lower by 20%, many threw up their hands in disgust claiming “I’m done, I’ll never understand the stock market!” There there little suckers, it’s not the stock market that can hurt you, it’s the manipulative forces that are at work behind the curtain. Direct your anger at them….or learn to play the game.
Fess Up Time: I successfully borrowed 1,000 shares to short AGEN into the hysteria, but by the time I got them, the stock had already fallen—damn useful posts like this for cutting through the industry BS and decreasing the # of suckers!
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1Andrew Coffey
April 8th, 2008 at 2:40 pm
Tim,
I was in and out of this stock years ago so i knew the story as BS right away. I’m surprised that CNBC ran that having just over a 100m market cap. When did we start trusting Russia over the FDA?
Ill be up in NYC on Thursday and Friday with Jon who is filling in for Pete on “Fast Money”
do you have a lot of inter city Twitters?
lets meet
Ac
2timsykes
April 8th, 2008 at 2:51 pm
yeah they normally avoid such low market cap plays, but i guess they figured they should create a scandal to attract more viewers or somethin
3A
April 8th, 2008 at 2:59 pm
Are people seriously dumb enough to sit at home, watch CNBC, hear about a stock that was mentioned, and then pull the immediate trigger on a trade within seconds without any further analysis? Do these people even look at the technicals!
I can’t believe the AGEN price action. Just shows you how many morons there are out there in the trading world. This is great. By following TIM, I will reap substantial profit off these suckers. I hope there is a steady stream of them for many more years to come in order to make me rich.
4A
April 8th, 2008 at 3:05 pm
I’d love to meet the moron who bought at the high of 3.90. Last trading at 2.95. How about a 25% drop in your equity in less than 60 minutes.
5timsykes
April 8th, 2008 at 3:14 pm
don’t blame the morons, they pick up day trading as a hobby, they hear about a stock and tell themselves “patience, patience” but then it keeps going higher, they feel guilt about missing out and buy in at the top. they loss $, give up and are replaced by new suckers
6A
April 8th, 2008 at 3:19 pm
Thanks Tim. I hope the steady feed of suckers doesn’t dry up now that I feel like I’m starting to get a handle on this game. I’m going to really need them in order to build up my account.
7timsykes
April 8th, 2008 at 3:22 pm
trust me, until my blog reaches tens of millions of people, there’s always gonna be plenty of suckers to go around
8Andrew Coffey
April 8th, 2008 at 3:34 pm
Not sure if you young bucks remember Dan Dorfman but people used to trade off his CNBC smack back in in the day.
And for you old skool homo’s Foster Winens was sent to jail for trading on his “heard on the street column.
9timsykes
April 8th, 2008 at 3:40 pm
LOL, there’s a long list–even Bambi Francisoco got caught, right? Winans at least wrote a good book about it all
10Derek
April 8th, 2008 at 3:47 pm
Just curious, how did you know Bambi Francisco got caught too?
11Joseph
April 8th, 2008 at 3:58 pm
Hey Tim, I was watching NTRI this morning, I did a little bit of research, and all my findings point to one conclusion-this thing is heading north today. Okay, so I paper traded it, bought at 18.72, I knew it was going up, but minutes after the market opened, this thing spiked, reversed direction, and kept going down, I waited, waited…but it just kept going down, and finnally lost patience, told myself that my thesis was wrong and got out at the very bottom, as soon as I got out, it proceeded to go up. I’ve observed that many times.
I know the stock is going to go up on strong news (good earnings, upgrade…), but for some reason it gaps down first before it goes back up. Why is that,man? I can’t figure this part out.
Oh yeah btw, for new readers, don’t take offense in Tim’s comments, that’s timmy for you, and don’t bother reading old posts, yeah they’re a lot of help, just buy the book/the dvd, it will save you a lot time plus the dvd contains a lot more stuff that he doesn’t discuss here.
12timsykes
April 8th, 2008 at 4:06 pm
joseph–thats because NTRI is a random ass pattern, no amount of research will make it predictable….lots of people like buying on dips–all of thelion.com did, they’re selling into those gains, everyone has diff. expectations, ignore those stocks, focus on the ones without fundaental news, strick to manipulation and hype, trust me, odds are much higher
13Joseph
April 8th, 2008 at 4:12 pm
Thanks
14Keith E
April 8th, 2008 at 5:23 pm
I like your style of trading Tim. It is very similar to how I like to trade.Today I shorted RGEN just after the open @ 6.66 and covered just before the bell @ 6.10. Saw the gap open @ 6.61 and stalled @ 6.75 saw the weakness with no follow through and down she came.
15Brendan Long
April 8th, 2008 at 5:50 pm
This is a free, open market. If CNBC has people pushing their positions without disclosrure I’d say theres a COI for sure. On the other hand when you watch shows such as Fast Money and Mad Money you have to understand the hosts on these two shows are actual fund managers - they do in fact disclose they bot or sold a given security.
Last week on Mad Money Jim Cramer had the CEO of SGP THREE TIMES during the week to talk about the hit SGP took - guess what? At the bottom of the screen reads “cramer owns SGP.”
Yes there are sure to be conflicts of interest, but in this kind of market you have to realize theres a buyer and a seller and you have to use your head.
16timsykes
April 8th, 2008 at 6:04 pm
who cares if they disclose if they own it and who cares about BSing CEOs–does no good whatsoever to bring somebody on whose job it is to lie and present the company in the best light no matter what (see Bear Stearns CEO days before the collapse)
its all the freaken WWF and unfortunately people are dumb with money, they dont realize it
17TradinHype
April 8th, 2008 at 8:40 pm
It’s hard to believe that they don’t make a lot of $$$$$$$$$$$$ tradin’ off their own hype. Is it too far fetched to believe they watch for volume changes, stick in some of their own $$$$$$$$$$$, then bail? Nah, the market ain’t no kind of conspiracy, now, is it?
The title of the Jerry Jeff Walker song is “Ridin’ High.” The market’s a fantastic place worth loving for what it is and how it operates. Sailin’ on the ‘BullShip’: full steam ahead! Or maybe ‘crash astern!’ What a trip!
Hey, what’d Cramer do with his bar-mitzvah money, anyway?
18Robert
April 9th, 2008 at 4:43 am
Tim,
You got some weird people posting on here….
19What Bubba Says
April 9th, 2008 at 4:03 pm
Well, what can I say? Robert, you put yourself in that class of people, too. Glad to see your aboard. It’s a supplemental compliment to us all.
Sheesh, I don’t believe I’m about to click the ‘post’ button. But I’m gonna.
20RedStar
April 9th, 2008 at 9:22 pm
What did Bambi Francisco get caught doing?
21timsykes
April 9th, 2008 at 9:26 pm
Bambi:
http://www.news.com/MarketWatc.....74226.html
22George B
April 26th, 2008 at 3:52 pm
Oh! Great job!
Very interesting and actual post.
Thx, your blog in my Google reader now