BIT - Swings into H1 profit and doubles turnover

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Diamante - Tue, 20 Dec 05 :

Talk about market manipulation - it looks like one or two spreadbetters think they can bet loads and cause continuing momentum as the price rises due to their bit bets (which cause big buys iover many days. The evidence is Man, who have bought to offset those who are betting through them. I suppose it's a reasonable strategy, pick the most illiquid picocap you can find, place a £100k up bet, and it is bound to drive the price massively higher as it goes through. Then other kids look at their charts, think something other is happening and buy on the momentum. A tipsheet tip oils the ramp of course.
The danger is if momentum doesn't continue, and the price goes down a bit. Just a pennu or two down can cause major damage to the better, and can cause marin calls, and forced selling, causing more drops and further calls etc etc driving the price back to where it started or less.


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