There is a well-known slogan to traders that refers to asset manipulation, “Pump & Dump”. There is not much to know, it is a primary stage of media blistering of the company, without great concrete foundations, for the manipulators to then download their titles to as many inverts up to the position. The technique is also used in the opposite direction, namely when there is a lot of speculative news of a negative nature, also without much reason, to lower the price and the manipulators enter much more inviting values. An example of the first case, “Pump & Dump”, was what happened to Moderna in the last few weeks.
Moderna is the company that promised a vaccine, with a high degree of probability of success, its CEO was several times in the main financial media. Objective? Pull the value of the bonds in order to raise capital in the market, but mainly for the “insiders” to sell a good part of their positions. Specifically, they sold more than 2.1 million bonds in recent weeks, while the company sold 17.6 million shares to new investors.
Photo by Martin Sanchez.
But then why the title “Pump & Pump, just no Dump”? Good for what is happening to the market and the hand that packs it, the central banks. The injection of liquidity is of such magnitude, directly and indirectly, that the Pump is continuous, hence there is not even room for the Dump, as evidenced by the current levels of the North American indices. Until one day.
