The stock trading game as played by the criminals
The following (text in green) is taken from Yahoo Finance pages written about the stock market game of late (except for the grapic, that is my own for illustration purposes).
Street Picks CCME: The Biggest Short Squeeze of 2011 January 27, 2011
Short Squeeze Coming For China MediaExpress? January 27, 2011
Shares of China MediaExpress Holdin (NASDAQ: CCME – News) are surging by 16% on speculation the company could be subject to a massive short squeeze after short sellers have piled into the stock assuming the company is a fraud, according to a report by the TheStreet.com. China MediaExpress is a member of the Chinese Advertising Stocks Index, which is up 8.2% today. Making matters worse for the shorts is the fact that China MediaExpress have soared 43% in the past month, perhaps encouraging the bears to add to their short positions at higher prices, but as TheStreet.com notes, they may eventually run out of shares to short, forcing them to cover those positions, driving China MediaExpress shares higher in the process.
In the past six months, short interest in China MediaExpress has risen to 6 million shares from 1 million shares all while the stock has doubled, according to TheStreet.com, indicating the shorts are playing with fire here. 
On February 3, 2011 this happened: (the stuff inside the blue box on the chart for CCME) (click on image to enlarge)
Then Citron Research, Bronte Capital and the research firm Muddy Waters published reports that, collectively, alleging the Chinese company of embellished its revenue by tens of millions of dollars and that the number of buses running its ads is less than half what the company claims. They also alleged that the company falsified its relationship with its largest customer, Shanghai Bus Industrial Group Co., that it manipulated reports by the independent research group CTR Market Research and that fewer than half of the buses in China MediaExpress’ network actually display its digital advertisements.
Muddy Waters, a firm described on its website as one that “sees through appearances to a Chinese company’s true worth,” initiated coverage of China MediaExpress on Thursday with a “strong sell” rating.
In his letter, China MediaExpress Chairman and CEO Zheng Cheng countered that the firms making the allegations are actually short sellers — that is, investors who profit when a stock falls. He said it was no coincidence that Muddy Waters issued its report on Chinese New Year, when the company was not likely to respond but U.S. markets remained open. “By using the anonymity of the Internet and publicizing as many unfounded allegations as they can craft, they can make it look as if there is a ground swell of criticism against the company when in reality all the claims emerge from a small group of self-interested parties,” he wrote.
On February 7, 2011 this happened: Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased China MediaExpress Holdings, Inc. Securities Between 11/8/10 and 2/3/11; Announces Upcoming Investor Deadline (CCME)
All the above is material from Yahoo Finance, except the first line of preamble (and my graph, courtesy of Stockcharts.com).
Why am I even caring about this, because I know people who had already realized a huge gain, who sold at the first peak in the above graphic. They then bought back in during the subsequent trough, coming back for a double dip and were up big time at the second peak as shown by the blue arrow in the graphic above (this is where I said sell and run).
Then they bought into the media BS and tried to convince me of the short squeeze that was supposedly taking place on February 3, 2011. The one that the media was pushing. You see they were running on emotions instead of looking at the technical indicators.
I disagreed, the technicals said they should take the money and run. As well, the total short position was 6 million shares out of 650 million outstanding, maybe 1%. It seemed normal to me. Well they hung in there, letting their greed get the better of them and they are now underwater on the trade. They even emailed my the media crap to show me I was wrong.
So they were up $9 a share before the lies started flying. The percentage gain from there wasn’t worth the gamble to me, the technicals were showing exhaustion. There is an unwritten rule in the stock market that says, “the market will do what hurts the most people”. And that could be because the boyz fix it to be that way after they set you up.
This, in hind site, shows that the fix was definitely in, and they sucked a lot of people in, including the media. We saw here how it takes a lot of effort and support and confidence to make a stock appreciate in value and it takes a few well placed coordinated lies to undo that effort. When you have a profit, take it. Tomorrow is another day.
Over and Out.
Update two weeks later….It’s been delisted. See the flatline in the blue circle with the arrow pointing at it.
Bummer, the money is stuck in a delisted stock in a diving market in a currency that is dropping and may have restrictions imposed on it. That’s really f’d up. The market gods are nasty.
