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I Am not sure if this how operators actual work but worth the sharing. You guys decide. 

You may have seen a stock pump and dump underway the last couple of months in the Bursa Malaysia stock market for any number of small cap and medium cap companies. 

The whole reason behind a stock pump and dump is for the stock pumpers to profit.

These pumpers – some persons, or some group, buys shares in a company.

They promote this stock to other investors.

The share price rises due to the other investors buying the stock and then pumpers unload their shares at a premium to other investors.

5 Steps In A Stock Pump and Dump

Step 1 – The Bait

This is the first step where the pumpers share the “good news” on a stock they bought earlier.

They spread the good news via personal emails lists, stock forums, money magazines, social media, words of mouth (via broker) or even go as far as getting the newspaper to write an article on this.

During The Bait stage, some popular sentences you always hear -

“The company is negotiating some hundreds of millions ringgit projects”

“The stock is undervalued and have huge upside potential”

“The stock is dirt cheap … you don’t want to miss out when the ‘good news” come out …. soon!”

“The stock is 20 cents with the target price (TP) of $1.20 …that’s a 500% gain!

Could this possibly be true?

Step 2 – The Rally

During this rally phase, the stock will start moving aggressively with the people who got the “good news” buying and pushing up the stock price and daily volumes 5 to 10 times higher than when the first “good news” posted as the bait was released. 

And every day, for the next week, next two weeks, next month, you’ll see those same subject lines with the same calls to action: Buy, buy, buy…good news coming soon! Target price $1.50 …. jump in now!

And if you’ve already bought, the goal is to get you to buy more.

Step 3 – The Sell Off

The stock pumper generally refer to this as a “temporary profit taking.” In other words, they’re blaming a group of investors taking some profits who are driving down the stock prices.

However, the more likely culprit here is that all those pumpers who bought up million-plus share positions early on and are starting to dump their shares onto a very artificial market.

Unfortunately for the other hapless investors, most of those shares were sales executed by these pumpers as the stock plummeted below the price where most of them bought in.

Step 4 – The Rebound

Eventually, with enough work, enough spam, and enough new names pouring in thinking they are getting a bargain, the selling tide abates and the stock moves up again.

During The Rebound, popular sentences you always hear -

“The stock is a bargain at this price, buy now before it move again!”

“The stock is technically oversold and ready to resume its rally!”

“I just bought 300 lots at this cheap price.Getting ready for the bounce.”

In the next couple of days, the price does indeed recover, maybe as much as double from its sell off lows.

Step 5 – The Demise

In this stage, the stock slowly drop and keep dropping for weeks and months till all the selling dry up.

There is no more “good news” or is usually the case, no news on the stock at all.

All the stock pumpers have left the stock and they are promoting a new hot stock to new investors.

All we know, based on the pumper’s subject line, was that any chance for more gains on the stock pretty much went up in smoke the moment they came out with a new stock pick.

Conclusion

Legitimately promoting stocks is accepted, ethical, and if done right, profitable for everyone – investors and owners alike.

However, an evil cousin of legitimate promoting is a stock pump and dump.

Designed to be little more than a short-term artificial boost to the share price of a stock, stock pump and dump generally last only as long as it takes for those who financed the pump to sell their shares on their unsuspecting fellow investors.

Don’t be fooled by these stock pump and dump scams in the stock market by learning how to invest wisely on stocks.

Cable By ZHUGE LIANG

A slang used among forex traders referring to the exchange rate between the U.S. dollar and the British pound sterling. Because it is the norm in forex for most major currencies to be quoted against the U.S. dollar on a regular basis, "cable" is a commonly used term.

"Cable" can also be used to refer simply to the British pound sterling

For example, you may hear someone dealing with the forex market saying, "The cable is up today," or, "The cable has been trending lower lately."

The origins of this term are attributed to the fact that in the 1800s, the dollar/pound sterling exchange rate was transmitted via transatlantic cable. Forex brokers are sometimes referred to as "cable dealers".


Composite Index Daily Technical Analysis 26/11/2008

On Wednesday, the Bollinger Bands Width of the KLCI contracted 2%, suggesting lower volatility, thus implying a consolidation for the KLCI which ended today 3.81 points lower. However, the KLCI is still below the Bollinger Middle Band, therefore, the immediate outlook is still cautiously bearish biased. Therefore, breaking above the Bollinger Middle Band is compulsory for the KLCI for any further progress.

Support for the KLCI is still at 800 mark while the 887 Fibonacci Retracement is still the resistance for the KLCI. According to the chart, the KLCI is still within the confine of it's downtrend channel, and therefore, the downtrend remains intact.

As indicated by B, total market declined another 22.2%, and the volume remains below the 40-day VMA level. This suggests that the overall market participation is relatively low as investors are still on the side lines. Nevertheless, the low volume is usually typical for the KLCI is still consolidating.

As circled at C, the Stochastic is still below 30% level, in which the short term bearish signal remains intact. In short, unless the Stochastic could break above 30% level successfully, the market movement for the short term is likely to be bearish biased. If the Stochastic should also break above 70% level, it would be a short term bullish signal for the KLCI.

综合指数 2008年 11月 26日

如图中箭头A所示，布林频带（Bollinger Band）收窄2%，所以综合指数继续的以窄幅波动，微跌了3.81点。无论如何，由于综指始终是处于布林中频带（Bollinger Middle Band）以下，所以综指继续有转弱的风险，除非综指回弹至布林中频带以上。

综指当前的支持水平继续的落在800点的胜图自动费氏线，阻力水平则为止在887点的胜图自动费氏线。我们也可以从图中看到综指近期继续一直都是处于一个下降趋势轨道（Descending Channel）内，所以综指一路都是缓缓下滑，直到综指能成功上扬突破此下降轨道。

如图中箭头B所示，成交量进一步滑落22.2%，所以成交量继续的低于40天成交量移动平均线（VMA），这显示投资者继续的在对市场后市不明朗的情形下继续的离场观望。通常在布林频带收窄时，成交量低于40天成交量移动平均线是一个典型的状况，这表示市场目前是处于一个调整巩固的格局。

如图中C圈指示，随机指标（Stochastic）目前还是处于30%以下，这表示综指的短期走势继续的属于弱势中。无论如何，若随机指标开始上扬突破30%时，那将是综指出现技术反弹的先兆，不过随机指标是必须上扬至70%的水平，综指的短期走势才能确认为形成上扬的格局。