The term 'the rich get richer, the poor get poorer' is a sentiment that rings true too many. The fact is, it's a battle trying to get ahead in anything whether it's business or the share market when you're up against gigantic players, and in terms of the stock market I am referring to those who have the means (a sh*t tonne of money and resources) to manipulate a stock for their advantage.
Stock manipulation is not only frowned upon, it's also highly illegal. But with a multitude of stocks at play on the ASX and literally hundreds of millions of trades occurring daily, it's no wonder stock manipulation flies under the ASX radar... Okay I'm kidding. Let's face it, the ASX have the resources, the money and the software to apparently pull up micro-cap stocks for price queries, surely they have the means to see the blatant proof that Zip (and other stocks) are highly manipulated? Surely a commoner like me isn't more genius and observant than the entirety of the ASX ITSELF?
The problem with stock manipulation is that, well, it's f*cked. The big players aren't the ones who get hurt, it's the little guys who are just trying to get ahead. And the most f*cked thing about stock manipulation is that it essentially erodes a stock from within. For example, a stock can tick all the boxes in terms of potential growth, product development, the board, finances etc, but as soon as the manipulators jump on board, it hinders any growth and the little guys are the ones who get screwed because they are the ones who either panic sell or have to initiate their loss management plan so they sell off.
So how does stock manipulation occur? Firstly, there needs to be volume, with a load of volume the manipulators can really swing the stock to their advantage, adding on sell orders at prices so far from the current stock price that it fluctuates the volumes to their advantage (riding it down so they can buy low, and then riding it up so they can sell high - and the cycle continues). But, let me reiterate, they need volume to do this. Why does it f*ck the little guys? Because the little guys are enticed to volume, good volume generally means the stock is trending (until of course the manipulators take advantage of the situation, and it's the little guys left holding the bag).
Of course, I realise you're all waiting for the proof. I'm getting there I promise.
Zip has been one of the most highly traded stocks this year, in terms of volume, price fluctuation and orders. It has also left many reeling, caused mass depression and panic sells. To put it lightly, people who couldn't afford to lose a lot, have lost a lot on Zip. Had it not had been for the obvious stock manipulation, this stock would be well on it's way to hitting the $20.00 mark by now.
Here is the proof, I'll break it down.
On the 4th of December Z1P's open estimate was $5.78. The volume was shot. Seller volume was substantially higher than buyer volume, which generally affects investor confidence and holders initiate panic sells.
Buyer volume approx 1.7 Million shares
Seller volume approx 5.7 Million shares
However, if we look at the trades, majority of the Seller Volume was listed so far from the current stock price of $5.78. This clearly indicates stock manipulation.
The stock volumes listed at the $9.00 price point indicate 'big players' with a big hand. It also wouldn't surprise me if these players also make up the smaller, yet more substantial amounts at the higher price point also.
Let's be real this is stock manipulation at its finest. In this instance, if the big players load up so far from the current price, it gives the impression that the stock is not in demand as there is a substantial amount of sellers versus buyers. And with Z1P, this has been happening all year.
"Market manipulation happens when someone tries to rig the supply and demand of a particular stock or another type of security. It’s a scam that could lead you into thinking the market is going one way when it’s actually not. It’s also illegal."(https://smartasset.com/investing/market-manipulation)
$9.00 Sell Orders.
$8.80 Sell Orders. Another sample of stock manipulation.
$8.00 Sell Orders. Another sample of stock manipulation, also I am just going to say it, as the $8.00 mark accounts for 4.9Million worth of share volume, it's fair to say many of these unhighlighted sell orders are also most likely a case of stock manipulation.
The question is, why hasn't the ASX stepped in when stock manipulation has evidently been an ongoing issue with Z1P in particular? Why hasn't an investigation been launched? A simple solution to this ongoing issue would be that sell or buy volumes too far from the current stock price don't affect the stock sell or buy volume.What are your thoughts?
SOURCE: TheTradersEdit . com . au https://tinyurl.com/y8wcbs8l
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