JT's Puppet String Theory

The Hidden Secrets About Penny Stocks & Market Maker Manipulation

JT's Puppet String Theory

Many feel the penny stock markets focuses around companies fraudulently portraying themselves as the next big thing in order to fleece investors. Although that statement is often true there is much more to this scam that has been hidden from traders & investors alike.

How long have you been trading? 3 months, 6 months, 1 year, 5 years, 20 years? By the time you are finished reading this you might realize you don't even know 1/10th of it. The Pump & Dumps is such a small part of this very complex & intricate, but important part of this scam on the public.

The pump & dumps scams are real, but it's only a smoke screen like Roswell crash was to hide US military technology over the past decades. Our Stealth bomber? You haven't ever seen it. It's truly invisible, travels at Mach 4 & creates its own ionic field so there is no wind resistance. It's silent, deadly & secret, just like the real Penny Market.

The Stealth Bomber is a good example of how much further ahead "Those that Know" are from those "That don't Know".

They say investing in the Penny Market is "The transfer of money from those that know how the penny market really works, from those that do not".

This is only partially true because what I'm going to explain no one has ever figured out before.

The most important fact is: This game is rigged.

If you didn't know that, and you are playing pennies then you are one of the statistics wondering what happened. Or soon to be.

If you are a professional or full time penny trader, the odds are if you've been trading longer than a few months you've got an idea of what's hidden from plain sight, behind the magician's curtain that no one talks about and no class teaches.

The Puppet Master: As a trader you must have sensed, or you are aware there is a puppet master controlling all of this. There is no other explanation for the things we see. Some of these oddities violate almost every law of physics that could possibly apply to a financial environment.

The Market Makers For example most have the understanding the life blood of the stock market flows on the principles of supply & demand. In reality the laws of supply & demand have no bearing when a Market Maker is allowed to create imaginary supply or imaginary demand.

The Illusion: Many traders have seen what could be described as "Someone eating their cake & still having it too". This is explained as seeing an illiquid ticker with millions of shares sold at the bid, at near 100% down tick & the PPS goes up 10%.

That's like saying I'm strapping on a 100 lb. scuba vest, while skydiving to get better lift, and it working.

The things a full time trader can witness on a Level II screen make Penny Land’s mailing address seem like its right next door to Alice's Wonderland address. Nothing makes sense.

When I see a Market Makers manipulate the quote to where a 100 share sell, drops the PPS by 15%, and the very next day a 100,000 share sell, only moves it 1/100 of a cent. (This happens vice-versa as well.) I'm reminded that down here 2+2= whatever the market makers dictate.

I will go as far to say even if you've been trading since the day dirt was discovered, I would bet you have no idea what's really going on down here. (And I meant "Down here" If you are one of the few successful penny traders. Then you must have an understanding of what everyone thinks are the Market Maker tricks that rule this underworld.

Reality Check: It does not matter how much you know or how long you've been trading because what I've uncovered proves there is still the transfer of money from "Those that think they Know" to "Those that really Know" at every level. Trust me when I tell you we are not one of "Them".

Here's where things get crazy: If you've been trading for any length of time you must have witnessed the whole penny market tanking for no apparent rhyme or reason. This drop can happen for a period of time lasting for days or weeks.

This happens what seems like every month or every other month so what could it be? If you are a trader witnessing this by watching Level II software it looks like every company selling, and selling, and selling until the cows come home, then they sell the cows.

The "Cause" Mystery: I wanted to know "Why" this happens and have asked myself as well as many respected traders the possibilities.

1.) Do they all need money for payroll at the same time?

2.) Are tax bills due?

3.) Is there a FINRA rule that states companies can dilute only during certain times of each month?

4.) Could it be a secret conspiracy that every public company is involved with selling at the same time?

5.) Are there certain State, Federal or FINRA fees or dues that are due every month? Of course none of those questions makes any sense for a logical reason as to why.

The Doubters: Many if not all traders have indicated I'm crazy. They tell me I'm seeing things, there could not possibly be an algorithm running Penny land. But still, we watch what would be impossible to describe as a natural event or combination of multiple, fantastic, coincidences taking place almost like clockwork precision. Over and over, and over, and over again which have been inexplicable until now.

Cutting Edge Tech: Last year in 2012 I created my proprietary scanning system. No worries, it isn't for sale so that's not what this story is about. I'm not selling anything. I don't need to. :-)

My system is setup with seven flat screen monitors, in 56 virtual environments. I only use 12 virtual screens. My 12 screens are filled with hundreds of scanners that are fine-tuned to sing a beautiful harmony that allows me to see the penny market better than if all of the Market Maker's level III, systems were combined.

I can't see hidden quotes but I can see everything that happens in Penny land from a Birdseye view and in real-time. This has enabled me to catch almost every breakout by the 3rd buy. I have publicly posted my results on my Investors Hub message board for documented proof. (I have a video posted on my website (http://ift.tt/2lDuqI8)

My elaborate, over the top trading platform also allows me to see market maker anomalies that would not be visible to the mortal trader. I see things that are not visible on a laptop running just one program. My system runs at least a dozen different trading programs and like many traders that use a scanner, have five monitors dedicated to just scanning, each filled to the brim with a different scanner set to slightly different features to create a tapered fishing net of sorts

This trading platform design catches great buying opportunities like I’m fishing with nets, allowing the "Throw back's" to slip out, and the "Keepers" to stick out like a sore thumb. In addition, as a bonus I'm afforded the luxury of seeing groups of tickers moving like a school of scared fish. This type of movement is common when it come to a school of fish or flock of birds, but this type of reaction with a multitude of stocks could not happen unless someone or something was making it happen.

The Mission: Many, many moons ago I set out on this seemingly impossible mission. Not unlike the Blues Brother's thinking it’s a "Mission from God" I've dedicated literally thousands upon thousands of hours & dollars to figure out the cause of this seemingly conspiracy theory, type effect.

If one was to peruse my IHub board "JT The DD King's Real Time Scans" or the site http://ift.tt/2lY87zs website they might see where I posted over the past year about this theory or that theory, but never coming very close to finding a starting point.

Finally the first Step: This changed during the month of February 2013. On February 20th, 2013 I was watching what seemed like 70% of the penny market tank at the same time. Then like a fire ant attack, it seemed at the sound of a bugle horn almost every ticker went off at once racing in a new direction.

I scratched my head thinking "What could be the cause?" I knew there had to be a catalyst. If there is a cause, what could be the reason for this to happen?

As with a crime scene the first place one should investigate is "Who benefits? If I could figure out the answer to either of those questions, "The mystery of penny land would be solved & I might be able to be immune to the Puppet master's control & clip the strings.

The Breakthrough: Then it happened on that fateful day in February. I had a break through by accident. Just as the tickers were moving like a school of fish, changing direction from solid red, and well into green, I heard the TV anchor mention an economic indicator report.

I thought to myself "Could it be something so obvious & so simple? So far after spending many months of work I was still trying to find square #1. I had approximately 8 months of solid work, but still didn't have a clue of how much I didn't know, but this idea gave me a new starting point, and new hope.

First working theory solution: The first thing I did was download every economic calendar & import the overlay into one big calendar. Then I started keeping logs of how the market reacted to each economic report, before, during and after.

I spent over a month charting and finally by April 1st was ready to announce that I believed I had uncovered an algorithm that seemed to be the driving force behind many of these strange, inexplicable anomalies.

1st Theory implosion: No sooner than I announced my findings, the haters came out from everywhere. Then just as Murphy's Law would dictate, my theory & plans completely fell apart, no longer working. I couldn't believe my eyes nor could I understand how I predicted a heat map for trading pennies, 100% accurately for a month strait and then without any clear reason my theory fell apart in front of everyone's eyes.

Enter Super-Wife: I spent all of April and into May pouring over data & notes to no avail. Then just as I admitted I was a failure, in my sorrow & self-pity my wonderful wife made a beautiful, candle lit, steak dinner to attempt to cheer me up.

As she was placating me, letting me vent by telling my story as I was explaining this craziness layer by layer like an onion unraveling. I could tell I lost her within the first few moments of "Trader Talk" but I kept going.

It's funny because every person has the same symptom. Their eyes glaze over, they stare into space with a permanent-smile, and then I'll ask "Do you understand what I'm talking about?” I already know the answer is "No, not a clue".

After a few minutes of wildly talking into the air, all of a sudden I realized I wasn't a failure. My theory worked! I was so busy feeling sorry for myself I failed to realize tax week threw me off!

The Raw Truth & Solution: If you are a trader you might be able to understand what I'm about to explain, if not, and you made it this far, you might as well forget reading any further because it's going to sound like Swahili to you.

The Secrets of Penny land. This is a very complex formula. I will expose the gist of it but there are a many other factors that need to be plugged in to make this work efficiently.

The penny market is controlled. There is no doubt. It's not even up for debate, but by whom? The basis to solving this complicated, multifaceted mystery is answering the question; ~ Who could benefit by the market going down?~ that’s quite literally the $68 Million Dollar question.

The answer many, if not everyone would agree is "No one" or maybe "Shorters". The problem with people that short sell a security are not in a position to control the market in the ways I'm describing so the "No one" answer is 1/2 correct.

~There is no need to ask who could benefit by the market going up because that answer is almost limitless.~

The next question I asked is; ~What could the penny market tanking do with regards to economic indicator reports or with the economy?~ Hmmm,... I thought I might have something there.

Theoretically, if the markets were artificially depressed before an economic indicator report was announced, then after the announcement if the stock was free to return to natural levels, the huge rise in pps could be contrived as consumer confidence in the US economy is strong. Hmmm,... Makes sense.

This type of manipulation could give someone (Maybe Federal Reserve) the power or option to use the markets to help make the US economy appear healthy regardless if the news from the announcement was good or bad. How many times have we heard "The bad report has no effect on the economy because the markets rallied shortly thereafter"? If this were true it could be the perfect crime, but it only gets better.

The 2nd part of this criminal trilogy is; there is a cooling off period after the report, then a certain number of trading sessions later signals a 6-9 trading session run. During this time most PR's are released and many tickers have their greatest gains. Its human nature to be drawn into an investment when others are interested as it's skyrocketing up.

This makes a perfect scenario to entice many investors as the tickers are moving up quickly, only to be disgruntled a few weeks later as the ticker slowly drops in value by 10%, 20%, 50% or more. Thus creating a buying high, and getting scared into selling low scenario.

The one thing that made this theory almost impossible to figure out is a special key. Actually there are a few keys. Don't worry I'll tell you some of them. There are other keys I won't divulge, which are needed to complete this combination. The full combination allows a trader to know exactly when to buy & when to sell with almost surgical precision.

The first key is; the starting point is moving. It's a floating date. There are certain reports that come out every week, and then some that come out every 4th week. The month is not calculated on a normal month calendar. This month is calculated by last period.

The 2nd key, and very important variable I something called an SSOI. Every quarter & then at other certain times during the year Market Makers must submit their Focus Reports. MM's must disclose their unrealized gain or loss in every security they own. Just as the IRS forces every merchant to inventory their stocked goods for taxes, Market Makers must report their gains & pay taxes on any unrealized profits.

In Penny land the Market Maker with free reign to sell to himself to create imaginary liquidity at the bid side of the market. He is also free to increase the spread so even a 100 share sell drops the pps by 20%. As a trader with L2 how many times have you seen someone sell 100 shares in double or triple zero's and wonder "Wtf just happened?” Why would someone spend $9.95 in fees to gain something like $11?

Common sense will tell you "No one would do that". Common sense is correct. Market Maker's execute a cross-trade to drop the value of every illiquid ticker to lower their tax bases by millions upon millions of dollars every Quarter.

Another dead give-away is seeing things like a Market Marker "Box" the security. "Boxing" is a sure sign of Market Maker manipulation & on some of these days I witness certain Market Markers boxing in at least 60% of the tickers I'm watching. This only happens during the down weeks.

In Conclusion: According to JT' Puppet-String Theory one has approximately 3-5 prime days a month from which to buy. The best day often is a Wednesday I've nicknamed BloodBath-Wednesdsy or BBW for short. .

Following my formula, a trader has approximately 5-6 trading days from which to sell. If you mix them up you'll be lucky to break even, unless you triple your investment by cost leveraging down on BBW.

If you understand what I just explained & follow my formula, even a blind monkey throwing darts into a dark room, with charts on the wall will make 3x-5x what they would normally make trading any other way.

NoteThis isn't the rule of thumb but seems to be the Modus Operandi of an at least 70% or more of penny stocks. There is no formula that can shoe-horn every ticker into the same box, but this theory serves me very well.

JT

Submitted March 02, 2017 at 10:17AM by Zardiw http://ift.tt/2lDjhH8