Specialist Manipulation of Individual Stocks And Markets
A Question Of Fact Or Fiction?
In my opinion the market place as a hole and
individual stocks in general are under heavy
accumulation by the specialist system and
more importantly by individual specialists.
The problem I have with this is the fact that
individual investors continue to sit on their
hands and watch as specialists continually
and consistently rob their hard earned money
from their financial accounts. Investors are still
under the belief that the stock market is an
“Auction Market”, driven by their buying and
selling of individual stocks and mutual funds
that they invest in. Nothing could be further
from the truth.
For the entire 20th and start of the 21st
centuries specialists have exerted their control
over the market place creating the booms and
busts of market cycles. If you don’t believe this
ask yourself the following questions, during the
Great Depression of the 1920’s and early 1930’s as
individual investors and corporations were wiped
out how is it that specialists made massive profits
for themselves and their corporations?
Also, why is it that during every major recession
that this stock market has weathered in the last 100
plus years those same specialists have made
exorbitant profits? And most importantly why is it
during the market crashes of 1963, 1987, and 1998
specialists made record profits for themselves and
their companies at the expense of investors?
The answer is simple; investors don’t
understand how the market place works.
When they invest in a stock and they make a
rare profit they are overjoyed with their
success. When they lose money on a stock
their broker simply tells them they made a
poor investment choice and moves on.
Specialists are able to continually cheat
investors of their profits by hitting them with a
three-pronged attack. These three levels of
attack are as follows, the use of the “media” to
control investor’s insights and knowledge of
the market place and individual stocks. The
Federal Reserve and its control interest rates
and money supply for both corporations and
individual investors. And finally the specialists’
use of his “short sale” to control market and
stock tops and his “short covering” to
accumulate stock and stop market declines at
their cumulative lows.
Now you ask yourself how is this all possible,
well the answers are simple, when one has
been indoctrinated from the time he or she has
learned how to handle money in the wrong
manner, it is virtually impossible to make the
proper decisions when buying and selling
stock.
All of the information that the individual
investor receives, whether via the internet, his
morning stock pages, or via the electronic
news media, (IE) TV and cable networks is
generated on the 14th floor of the New York
Stock Exchange. The Exchange fabricates all
of the information about stocks prices, splits,
mergers, scandals and potential failures. It is
therefore impossible to get the proper
information from them to make the educated
investment decisions necessary to be
successful in the market place.
They are also used to continually inundate the
investor with shaded information when it
comes time for them to either enter of leave
the market place. As stocks are reaching their
collective all time highs and investors should
be selling out to prepare for the imminent
decline, but instead they are coerced into
staying into the market place and buying more
stock at these inflated highs as specialists and
market and Exchange insiders are themselves
leaving the market place.
The same can be said as the markets
approach their collective bottoms. As investors
should be considering buying more stock as
their issues move down they are again
coerced into leaving the market place as the
media paints a picture of major catastrophic
disaster for the investing public. They paint
such a bleak picture that investors throw up
their arms in disgust and sell everything at
massive losses just to try to save face.
The “Federal Reserve” is another tool that
specialists use to force investors to make the
wrong decisions. Recent history has again
proved this point to be true. Just last month
the Federal Reserve dropped interest rates
1-¼ points in order to keep investors in the
market place. As they dropped rates the
market rallied for several day’s giving the
appearance of strength while specialists
unloaded stock back to the market place that
they had picked up as they cleared their
collective books of sell orders.
After that unloading process was concluded
specialists again moved the market lower.
Now we are again in the throngs of a major
decline and the Federal Reserve will more
than likely step in at next weeks meeting and
cut rates by another 1 percent. This will have a
two-fold effect on the market place. First it will
give specialists the opportunity to again
unload stock picked up during the decline
back to the public before moving lower.
It will also force investors to stay in the market
at the very time that they all know that they
should be selling out. They can’t leave the
market for the safety of cash instruments
because in their minds the 2% plus rate of
return won’t justify their needs.
The third and last dagger in the hearts of
investors is the specialist and his use of the
“short sale, and short covering.” As stated
earlier specialists rallied the markets sharply
higher last fall creating their highs in August
2007. At those highs they sold out their trading
accounts and more importantly their personal
long-term investment accounts. They then
continued to rally stocks while they sold 100’s
of millions of shares of stock short.
After completing those short sales they began
the decline that we are in now. When they
approach their lows which I believe will be in
the range of the 9,200 level they will use their
short covering abilities to again refill their
trading account, and more importantly their
personal long term investment accounts.
For those individuals who don’t believe that
this type of manipulation is possible in today’s
society look at the following examples of
stocks. The issues listed below are all issues
that will come under heavy accumulation at
their lows by specialists and market makers.
Notice how each is now dropping sharply from
its previous highs last year:
STOCK: HIGH CURRENT PRICE
AAPL: $204.00 $126.50
GS: $240.00 $157.00
NYX: $112.00 $59.50
WB: $60.00 $26.50
LEH: $172.00 $39.25
BSC: $173.00 $30.00
The next several weeks will be very volatile for
the average investor. He will be beset with
major declines in his stocks prices and more
than likely will be forced to sell them at losses.
One final point on the specialists’ manipulation
of individual stocks and the help it gets form
the Fed and the Media in its quest to
accumulate said stocks. Yesterday it came to
light that two of Bear Stearns funds were
becoming insolvent and that they were going
to have major capital withdrawals from the
company.
The media announced this news after the
market close the previous day. This allowed
the specialist to manipulate the stocks price at
the open in order for him to maximize his
profits for the following day’s open. He opened
the stock down $4.00 on a trade of 500 shares
and then dropped it another $28.00 on the
next trade of 1500 shares. How can you justify
taking $32.00 from a stocks price on 2000
shares traded?
After those two trades were made he was able Richard W. Wendling
to absorb the bulk of the day’s trades at or 03/15/08
near their lows and then rally to unload in the comments@bearfactsspecialistreport.com
last hour of trading. Volume was 15 times daily wendling_r@yahoo.com
average.

He used the information that JP Morgan and

the Federal Reserve were going to bail out
Bear Stearns to rally the issue. The media was
used to announce the impending doom and
gloom at the company and its potential demise
to churn investor’s fears and force them to sell
off the stock in the morning and then to buy it
back in the afternoon.

The specialist in this issue knew that there

were problems with the funds late last year as
he was rallying the issue to its all time highs.
He unloaded his stock at that time and sold
the issue short. He will use his short covering
in the near term once he drops the issue down
to the price range he desires and then will buy
all the stock he can lay his hands on.

People say, why buy a company that is

insolvent or going to become insolvent.
Specialists love banks and brokerages. They
allow them to massively manipulate the
market place by letting specialists borrow
stock for there short selling for special
considerations later. Having said this consider
the following:

In 1997 LEH, Lehman Brothers Holdings a

brokerage house was at its all time highs of $84.00
a share. Then it was made known that they were
having money problems and that the company
might be going to have to declare bankruptcy. The
public dropped the stock like a hot potato down to
the $27.00 level. Once the specialist in that stock
covered his short sales the bankruptcy words went
away and the stock rallied to $164.00 a share, split 2
for 1 and then rallied again to the $172.00 level
before again splitting 2 for 1.

In the final analysis do your own do diligence.

If you use the media or follow the actions of
brokers and TV commentators and so called
experts and economists you will always be on
the wrong side of the market or your stocks
movements.