You’ve probably heard of “bear raids”: Legend has it that short sellers join together to drive a stock down and create a self-fulfilling panic. These mythical beasts form the intellectual basis for limits on short selling, such as the uptick rule, which so many weak companies would like to see.
Well, as we’ve suggested, if we’re going to have an uptick rule, why not institute a downtick rule, too?
Because it turns out that bull raids (of a sort) happen too.
In early May, Yahoo Message Board user skuehl3 announced plans to launch a massive bull raid/short squeeze on Citigroup (C) shares. The thread is amazing and has garnered over 900 replies — probably more, since apparently many of them have been deleted (evidently, Yahoo doesn’t take kindly on attempts to manipulate the market).
Here’s the idea:
Trust me fellow Long’s, this will work. Join in and force the Biggest Short Squeeze in the history of the NYSE.
If you do the following, your broker will be forced recall your borrowed shares that the Shortie SOLD Short.
– Place a limit order to Sell ALL of your shares, good til cancel at $15.00
If everyone on this board does this, it will force your respective shares to be covered by the Short.
This will be the trigger to the avalanche. Depending how it plays out; this could be the highest percentage price gain in the history of the NYSE.
Why? Citi is the #1 shorted stock on the NYSE and by A BILLION shares more than #2. Check it out for yourself. www.nyse.com/financials/sitable.html
I have placed orders to Sell ALL of my shares at the maximum allowable price. $10. & $15.
It doesn’t seem to have worked. Citi has billions of shares, so coordinating a huge movement at Yahoo Finance is tough.