I wont be writing about the how the operation took place, see the picture as it speaks more than a thousand words. I particularly wanted to talk about the Significant Market Manipulation that happened in SGX. As for the markup and markdown phases, they are already included in the other posts on my blog.
After the summit point at 10.26 for SGX, big operators began to take profits but not all. The reason was if they took all their profits at one go, prices would definitely have a tendency to fall and they wouldn't be able to trap the public into buying this stock. Trapping the public is a MUST do maneuver that the big operators always use so that they could sell the stock at high price to the public who is willing to purchase from them thinking that the stock would go higher. If they would to take profits at one go and no trapping is designed, then how would they start short sell?
The Significant Market Manipulation was designed by big operators to take profits all at one go. You see, after that 2 days of manipulation and profits taken, prices start to trend up again. You know why? The reason is because public starts to think its cheap and starts to buy, however the big operators are not cashing on it until a attractive price level is reached. You might ask how i know? I will answer you cause i can read their footprints in the chart and i monitor they activity day by day on this stock and until i see real buying, i will definitely follow their action.
To sum up the Significant Market Manipulation in technical terms, the sudden whooping down of prices, after such an advance, suggests the frenzy of activity which, combined with a high and expanding activity increases the market's vulnerability to heavy realizing sales and likewise increases the danger of a general withdrawal of experienced operators who refuse to continue to sell at those levels. It is such conditions as these (created, by large operators who are managing the market) that are detected by floor traders and large operators and recognized as indications of a turning point. This turning point must be checked and determine on it's strength to validate if it will continue to move higher or just a technical rebound. If it is just a technical rebound in the case of SGX, this will add to the supply by getting out of the long positions and taking short positions, thereby not only helping to assure a turning point but also placing oneself in a position to profit by that downward swing.
Ronald K
