Re: stock volume manipulation

>> in article Xns971C81B1D37E4CoreyWhite@xxxxxxxxxxxx, Corey White at
>> CoreyWhite@xxxxxxxxx wrote on 11/28/05 12:44 PM:
>>
>>> I had a lucid dream last night where I felt I finally understood the
>>> stock market.
>>>
>>> In my dream market prices were controlled by a volume over earnings
>>> ratio. As stock market volume increased, the price would decrease.
>>> This was because the potential interest that would have to be paid
>>> back to investers by the company goes up as more shares are sold. As
>>> the stock market volume decreased, the price increases. This was
>>> because the over-all earnings of a company increase when they are not
>>> in debt to share holders.
>>>
>>> Do you believe it?
>>>
No. Secondary trading volume has no relationship to the company or
its earnings.
>
>
>>> You can watch this happen. As the stock market price goes up, you
>>> see volume increase every day. Then the price reaches a peak and the
>>> stock drops back down. This is because the stock market volume to
>>> earnings ratio changed the price. So as investers put their money
>>> into the market when they believe the stock price is going up, it
>>> actually lowers the value of the stock.
>>>
Price changes, either up or down, begets volume. As prices goes up, the
insiders are selling stock purchased at a lower price. At the top, peak,
they are selling short. On the way down, the insiders are covering their
short position. At the bottom, they are buying again to load up for the
price increase back to a peak. Volume always are at the largest at
the "blow off" at the top or bottom. Between the up and down trip,
the volume is moderate. The insiders are not company insiders but
market insiders. I agree that investors put their money in stocks when
they think the prices are going up and sell stocks when they think prices
are decreasing. Otherwise the insiders could not operate.
>
>
>>> In my dream people were calculating the actual total stock volume and
>>> earnings ratio and manipulating the stock market to their ends. It
>>> was an organized crime conspiracy.
>>>
Pure folly. The crime is being done by the stock market insiders.
>
>
>>> Because the stock
>>> market price drops with volume, this can't happen.
>>>
>>> Right??
>>
Yes, it does. And volume drops on the climb back up. It
is near the top/bottom that volume increases as the prices
are increasing/decreasing the largest percentage.
>
>
> No, there is a lot more analyzing to be done. I'm trying to find
> historical stock volume records right now.
>
>
Good. Look for volume increasing the most as the prices near
the top/bottom.


.

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