cappers confirmed, page-20

WL

I use the term 'capper' to refer to a seller, or group of sellers, that want to acquire stock cheaper than it is offered, so sell the price down hoping to influence the selling price of other holders, and by that process ending up with more shares than they sold at a cheaper entry point. they try and create or sustain selling momentum, then buy into it at a desired entry point.

they most commonly strike when a share has had a sharp price rise, capitalising on holders concerns that the price could sharply retreat. they also know that many speccy traders employ 10% stop losses, meaning that if they force a share down that much intra day that they can often clean these stops out without the holder even knowing.

give aways of cappers at work are continual replenishment of shares on offer at a lower price than a previous sale (which is counterintuitive), and late sell offs on low volume to dictate a low closing price of a stock.

we saw both these tells on MNM today.

cappers are generally good news for the longer term price of a share, because once they get as many as they want they turn their attention to driving the price back up so they can cash out in profit.