Sunday, July 25, 2010

The anatomy of a bear raid

"Expect Massive BEAR RAID this afternoon @ 12 30 pm central last trade 24 suggest you sell short into strength MASSIVE BEAR RAID coming.. TODAY"
- monthaphumchareon, April 28, 2009 around 11 a.m., the same day Dendreon CEO Mitch Gold was presenting Phase III clinical trial results at the American Urological Association for Provenge, an advanced prostate cancer immunotherapy approved by the FDA a year later, April 29, 2010.

"He was roundly mocked until the prediction turned out to be amazingly accurate. The stock plunged from 25 to 8 in 75 seconds. And later that very day, the company presented positive trial results."
- username "andybaron_ym" on an ARNA message board.

Avoid entering stop loss (market) orders to your broker on highly volatile, heavily manipulated stocks. It only telegraphs your intent to predator market makers who will steal your shares at much lower prices in a bear raid. Investors looking to protect their profits in DNDN got stopped out at much lower prices than their intended exit points. Entering a market order was a huge mistake.

This is a very long, but worthwhile read, full of intrigue, danger, greed, power, corruption, organized crime, and malice on Wall Street. Buyer beware.

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