Patterns in the Chaos
Stock went up today. Rite-Aid hit 2.63 from a start at 2.58. What's strange is the pattern. It's a pattern that I've seen before when I was playing CMGI. The stock languishes throughout the day. At the very last hour of the day, the stock jumps. It seems like some form of stock manipulation. People see it rising two days in a row and that gives them the impression that it's on a break out. The only way it could work is if the person or group had bought a massive amount of shares, $10 to $20 million worth when it was at a low of 2.30 to 2.40. They need to jump the stock near the close of the day and as long as people keep it leveled at the new price they stand to make a large sum of money. A massive sell off and people will panic and start locking in profit. The stock drops. The group keeps selling shares in a reverse fashion. Pick up another 10 to 20 million and start it all over again.
Is this real? No idea. Could it work? No idea. Would it be dangerous? Oh yeah. The reward though is a 20% increase or 2 million in baseline profit with maybe 100,000 in value loss for the down driving shares. When I get up to a higher trading level, maybe I'll see if there's any literature on it.
Is this real? No idea. Could it work? No idea. Would it be dangerous? Oh yeah. The reward though is a 20% increase or 2 million in baseline profit with maybe 100,000 in value loss for the down driving shares. When I get up to a higher trading level, maybe I'll see if there's any literature on it.