When you hear the whispers about “painting the tape” at the end of the quarter, when you hear the media predict/encourage the year-end “Santa Claus” rally every year and tell you that the Wall Street folks are depending on higher prices for their year-end bonuses, when you hear of all the money that has flowed into tech mutual funds over the past month, when you hear CEO’s — or anyone else, for that matter — touting stocks on television, when you hear Cramer pushing stocks on his television show, knowing full well he has already recommended those stocks to his paid subscribers, remember this from “Reminiscences of a Stock Operator”:
There is no sense in marking up the price to a very high level if you cannot induce the public to take it off your hands later…As a matter of fact, it is well to remember a rule of manipulation, a rule that Keene and his able predecessors well knew. It is this: Stocks are manipulated to the highest point possible and then sold to the public on the way down.
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