SIRI Intraday Updates for the Week of 1/19/09

[Siriusowner]

Those trades were going through below the bid and the ask, so it is very suspect. Who knows? With 100 share blocks painting the tape, you can assume that someone is trying to create a negative perception....

It didn't appear to work, because now SIRI has recovered and is trading green...

The negative perception has already been created... since several months ago, that is no news. It does not take a lot of intelligence to know that a market maker is behind it. No serious trader (smart money: either institutional or market maker) will waste time with this illiquid issue unless they have several millions on the line. In this case institutional investors do not care about this issue getting some appreciation. Penny issues are easily manipulated due precisly to its illiquidity !!!

You can do it yourself. Just borrow shares and sell them short !

I thought that by now smart money would be out of the way and far away from this issue but it seems that there is ONE market maker that has a lot in the line. It may not be until after FEB that we see some serious movement to the upside IF that market maker gets out of the way. Y'all know who the market maker is, its name starts with the letter G....

And yes I did say whatever in the past about it going to 10 cents or finding support, blah, blah, blah, etc... but hey, this is a monster that was able to manipulate oil prices, it is impossible to compete with them. That is why I have stayed away from this issue and the markets all this week... I have been re-evalutaing my strategies.

There's one thing you are right: this issue has been manipulated and not only SIRI but the whole market.

ps: Do not get your hopes too high if the price goes up. Who do you think is buying the shares that make the price go up ? We all are, right ? Who is selling then ? I know the answer: A MARKET MAKER. Are you sure he has the shares or is he selling you borrowed shares ?

[Demian]

SIRI closed green @ .108....

[Sworntwofun]

SiriousOwner..
Now thats intelligent information... that shows true knowledge... And if you have a moment to share your knowledge I will owe you one!

How does a trader borrow shares and sell them or better yet sell them short?

[trippingthespeculatingpos]

hes not selling mine, non margin account. cash rules everything around me, cream get the money, dollar dollar bill ya'll

[Sworntwofun]

tripp you gotta help me here! It like your speaking in tongues...I guess it just over my head!

[Siriusowner]

SiriousOwner..
Now thats intelligent information... that shows true knowledge... And if you have a moment to share your knowledge I will owe you one!

How does a trader borrow shares and sell them or better yet sell them short?

Your broker should have a list of issues where you can borrow shares from him to sell short. Be careful though, if you did not get in 2 weeks ago, right now is not the moment to short any issue.

ps: Hedge fund managers may even be able to sell "naked", meaning without even borrowing the shares, but that is unlawful and there is no way we, as small as we are, could do it. I know MARKET MAKERS can sell "naked" very easily...again, that is unlawful though.

[Siriusowner]

hes not selling mine, non margin account. cash rules everything around me, cream get the money, dollar dollar bill ya'll

Sworntwofun is right, what are you talking about ???

[Siriusowner]

Thank you for your commitment to this site. I am really enjoying the great information. Does this not have to be a group on both sides of the stock trading these 100 share blocks or could one person do it?

All stock market transactions have 2 sides, a buyer and a seller, HOWEVER; only one side is either actually buying or selling, YOU or ME ... the other side, eventhough is also "buying" or "selling", is just acting as an intermediary. He is called a MARKET MAKER.

What is a market maker ? well, it is your broker, a different brokerage firm, a bank or any other financial institution that has a brokerage arm.

You see, when you buy your shares, you buy them from a market maker. He/She has an inventory of issues he holds temporarly and he sells them to whoever wants to buy BUT he also buys them from whoever wants to sell. He tries to balance the market by adjusting the price of his issues according to the market sentiment. If there are to many buyers what do you think will happen ? his inventory will go down and he may start running short of a specific issue, so what do you think he will do with its price ? he will increase it to dis-encourage buying. That is why if there are too many buyers, the price of an issue goes up. Exactly the opposite happens when there are too many sellers. It is the law of supply and demand.

Try this simple excersise: Try to buy 1000 shares of SIRI whenever its price is going down (too many sellers). i.e: if the price right now is .11, put a limit order to buy at .12 (It will not get filled at .12). Can you figure out what happened ?

Now, place several 1000 share orders with limits from .12 thru .20.

Do the same but this time sell them.

It is called, price manipulation...and you can do it with 100 shares only.

[ray]

Sworntwofun is right, what are you talking about ???

tripping are you saying you are using unleveraged cash on hand to buy your positions.
if so does that keep that block of stock from being manipulated
thankyou siriusowner and tripping for your thoughts

[Siriusowner]

tripping are you saying you are using unleveraged cash on hand to buy your positions.
if so does that keep that block of stock from being manipulated
thankyou siriusowner and tripping for your thoughts

Leverage has nothing to do with stock manipulation. Leverage means that you borrow money to buy or sell short the shares. You can have 1:2, 1:3, 1:50... etc.... leverage ratio but again that is just money...