The Dangerous Game of the Wall Street Mafia?
..what happens when you kill the golden goose
There has been a pattern lately on wall street. A very dangerous pattern.
A company exceeds its numbers and every analyst and commentator keeps praising the stock. The stock overnight looks like it will go up like a rocket.
Market opens up and it gets slammed down. Asa great example ZM was up before market and during the day it was down -20 or so.
Does that make sense?
No it does not. A company is providing a product in the marketplace and exceeding customer expectations and demand.
What happens is that wall street insiders who are the only ones that can trade before market opens pump up the price. When the market opens they start shorting the price and get people scared and willing to hand back their shares with huge losses.
Consider that -20 is about 7% loss on a day after it announced profits and exceptional earning. The wall street mafia knows the pain point for most people because they can see where the stops are and support levels. All they have to do is push it slightly below those levels and cash in.
This should be illegal. If a stock has made its profits then the closing price of that day is the bottom. It must go up. No shorting should be allowed. for at least a week. Let people who are investors make some money and take profits NOT the wall street mafia.
To me it is all about trust. If a company does well it should be rewarded NOT punished by future expectations. That is like saying to your wife, “You have been a perfect wife for 30 years BUT next quarter you might slip and I will divorce you.” Crazy!!!
It all stems from expectations that each firm sets for wall street to judge. The company says we will make X and wall street starts to throw stones at that target. Most of the analysts have never run a single company and are simply somewhat math literate and can talk a good game. They don’t have a clue. The loudest of them all has even less of a clue.
SO what can be done?
You have to do your own thinking. I believe that
- once a stock drops 10% you should automatically sell it because a 10% loss can be made up with a roughly 10% gain.
- If it earns more than 20% you should take 50% off the table and then
- once it gets to 30% take another 25% off.
- If after 30% you see any bad news, sell the last 25% of your position.
Keep It Simple Sweetheart. Don’t trust anyone with your money and simply KISS.
My three cents….(this is what I earned from Medium.com for Feb. 2021)
I got to go…my future self alarm went off
PRODUCT LIST 2021
My first product of the year is the t-shirt with a circle. It can be purchased at
https://teespring.com/be-adaptive?pid=212&cid=5819
My second product is MyLin app. It can be viewed following the link below:
My Third product is a clean design T-shirt available on Amazon:
