Stock Market Syndicates

Another interesting posting from Cows Don’t Trade.

I find it interesting. Here goes:

Syndicates 101 –

Mantra: Collect, spread news, push, consolidate, distribute, hold, push, hold, distribute ...

Not as easy as it looks, even with massive capital backing. The pre-requisites: a good understanding of market psychology, appreciation of technical resistances and support lines and ability to lure and retain participation. In other words; How to make a dog stay as long as possible. “ Stay... I said stay, good boy.”

Bad syndicates do the above badly, and when they get lucky with market sentiment, they “become myopic and tend to dump all the shares and let it slide. That is poor syndicate strategy because there will be a dramatic shortage of followers when the same syndicate tries to push shares up again or tries to do that to another stock.

Understanding markets' and investors' psyche is the 64 thousand dollar question, or should I rephrase as "the 6 million ringgit question". A good syndicate knows how to continually give followers hope, and comfort to continue to hold the stock. Examples of current syndicate plays and their report cards:

"A" = KNM, DNP

"B" = Jaks, Faber

"C" = PA, Eden

"F" = Nextnation

You cannot stop the existence of syndicates, so get to understand them better... It’s not easy for syndicates to do what they do.. well.

Heartsong