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Autobytel Inc. Message Board

  • chamelean444 chamelean444 Apr 5, 2012 7:43 PM Flag

    How to panic longs....or, how to

    How to panic longs, or, more to the point, "how to protect a short position".
    The way it goes, is if I have a short position or say, 5K shares and I fear that the stock price is going to go up, what I do is to buy a few hundred shares of the same stock long, and then turn around and dump them the next day at market with no limit price....usually after market close. What usually happens is that in the after hours market, someone will inevitably offer far less than market close and create the illusion of panic selling. The shares do, indeed, trade for far less than market closing, but the effect is to convince longs that there's a crisis and that it's time to dump your shares.
    If this sounds familiar, it should. That's what's happening tonight, Thursday, 4-05-12. There is no crisis at ABTL. Just someone trying to protect their short position by buying a couple hundred shares and dumping them well below market with the idea in mind of creating panic selling. It doesn't always work, but using fear to panic longs is pretty effective.

 
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