Specialists Use Of The Media
The Media and its control:
You have heard all kinds of information on
the stock market, either in the daily paper,
printed media, or TV / Radio programs. The
majority of that information is absolutely
worthless.
Like the heads of major brokerage firms
and money center banks, the press lords
and heads of network broadcasting (like
Laurence Tisch of CBS who was on the
NYSE’s board of directors) are major
beneficiaries of the exchanges price fixing.
No matter how disastrous the
consequences are do to specialist price
fixing, nothing is allowed in newspapers or
on television that might help the investor or
diminish the high level frauds that allow
specialists to buy and sell for these insiders.
What you read or hear is no more than
propaganda meant to condition you to
either buy or sell in order to facilitate the
buying and selling of Exchange Insiders.
Financial news is only useful, therefore, if it
is used as a contrary indicator.
The media is a very strong arm of the Stock
Exchange. They are used to rationalize the
frauds of the Exchange. The roll of the
Media in this organization is extremely
important and equally as devious. The
Stock Exchange feeds the information to
the press and the electronic media. To this
end they are able to supply the public with
the news, and analysis of experts that they
want the public to hear, whether truthful or
not.
The news and information that is supplied
to the media for the public to hear is geared
to persuade the public to react in a way that
will be most profitable to the specialist, and
other Stock Exchange Insiders and least
profitable to the investor. And equally
important, by supplying the public with
reasons for the stocks price movements,
attention is always diverted away from the
specialists. Everything that comes from the
Stock Exchange directs attention away from
the markets movers and shakers.
It is also important to note that what you
read in the financial sections of the paper,
whether it be here at home or in the Wall
Street Journal, or others, is all geared to
keep you in the market at the highs while
specialists are unloading their inventories of
stock and selling short, and while they
themselves are in the process of exiting the
markets.
The same holds true at the markets lows.
When the news media continually flashes
news articles of “Bear Market”, this is the
time to be buying not selling stocks. They
want investors to sell their shares of stock
regardless of the price losses, and make it
look as though “Dooms Day” has arrived.
The truth is once the dust and smoke have
cleared from investors stampeding to the
exits in panic, the markets move
dramatically higher.
A perfect example of this would be if the
markets have been in a major up trend for
several months in a row. When you read
comments such as “Market Rally
Continues”, and “Volume has reached a
six month high”, and “stocks are re-
testing their 52 week highs”, it is time to
be selling not buying into the market place.
If you follow the information that the media
supplies, you will always be on the wrong
side of the market. If they are “Bullish” it is
time for you to look to sell. If they are
“Bearish” it is time for you to buy. If you
follow this simple strategy you will make
money on a consistent basis.
One of the primary ways specialists are
able to organize public opinion is by training
them to accept the market’s conventional
wisdom from the moment they speak to
their first stockbroker (who is himself
trained to perform like an auto matron).
The second thing the Exchange does when
a person enters the new world of investing
into which his high hopes have brought him
is to control what he reads and hears in the
financial media. The information the
investor obtains from his financial page
shapes his attitudes towards the market in
general and towards particular stocks. That
information can cause him to act while in a
state of euphoria, so that he either
purchases or is persuaded to hold onto
stock, or to act while in a state of despair,
so that he either sells or is persuaded to
remain out of the market.
What investors do not understand is that
these effects are deliberately contrived. The
information has been engineered in timing
and in content to cause him to take one or
another course of action, which in due
course causes him, to self-destruct.
There are several levels on which this
manipulation of the media can be seen to
assist specialist’s plans for the distribution
and short selling of stock or its
accumulation or short covering. In the
widest sense, through its news bureau, the
Stock Exchange seeks to develop a
consensus, albeit incorrect, among
investors as to general direction of stock
prices by disseminating whole articles of
media bits to outlets such as The Wall
Street Journal, The New York Times, the
PBS news shows such as the Nightly
Business Report or the Dow Jones wires
services. The articles often contain banner
headlines, which burn into the investor’s
consciousness an attitude toward the
market in much the same way a rancher
brands the cattle that belong to him. As
investors move past the headlines and into
the article, they find enough authoritative
quotes and data supporting the attitude the
Exchange wishes him to adopt that it
becomes all but impossible for him to think
the market could move in any other way.
How The Media Operates At Major
Turning Points In the Market
To see just how dangerous these articles
can be to you if you adopt the market
stance that Stock Exchange specialists
want you to take, it’s instructive to look at
some of the most important headlines from
past Wall Street Journal articles. In the
vicinity of the Dow’s absolute lows, in 1987
the following headline appeared in the
“Heard on the Street” column, arguably the
most widely read financial column in the
country:
If It Looks Like a Bear and Walks Like a
Bear, Chances Are That the Bear Market
Has Arrived
It stated that, “Attention Investors: You are
now entering bear market territory . . . A
decline that pierces the 2400 level would
make this a bear market by almost
anyone’s definition . . . Based on precedent,
the decline will carry stock prices
considerably lower. In bear markets stock
prices typically fall about 38% and the
decline usually lasts about 19 months. If a
bear market started in July - - and it proves
to be of average ferocity - - investors can
expect the Dow Industrials to drop to about
1860 by the end of next year.” Shortly
thereafter the Dow was dropped under
2400.
Undoubtedly there were tens of thousands
of readers who, after seeing this column,
were convinced that the recent lows market
the onset of a major decline when, in fact,
in marked the end of the decline which had
been covertly conducted for more than a
year. Investors, fearing there would be even
further shrinkage in the value of their
portfolios sold en masse.

Specialists were there to scoop up the stock
that most investors were selling and happily
stashed that inventory into their trading and
investment accounts in preparation for the
rally they launched after a low was
established in October.
As stock prices were slowly rallied off there
October lows, the Stock Exchange had to
do whatever it could to keep investors from
buying at what were levels far below those
where specialists wanted them to make
those purchases. One of the ways they
accomplished this was to keep
psychological pressure on investors with
articles in the Journal’s November 21st
“Heard on the Street” column titled as
follows:
A Bear Market Rally? It Sure Looks Like
One
That article went on to state, “Bear market
rally: a temporary increase in stock prices
within the context of a longer term decline.
Also known as a sucker rally. Based on
market history, technical indicators, and the
economic environment, they [experienced
market pros] say this upturn has classic
hallmarks of a bear market rally.” It’s clear
that the purpose of this piece was to
transmit the message to investors that
November was not the time to be buying
stock and that they should play it safe by
remaining out of the market. Of course, any
purchases made even at that point would
have paid off handsomely in just a few
months.
How Financial Reporting Affects A
Particular Stock
Thus far, we’ve been showing how the
Stock Exchange uses the media to develop
a consensus about the general direction of
the market. However, the media fulfills
another important role. When the Stock
Exchange wants to help a specialist or
group of specialists accomplish a specific
merchandising objective, the media often is
recruited to assist in the effort. It is actually
used to transmit to large numbers of
investors news which the specialist knows
will have a predictable affect on investors
and if it is framed in such a way that it
enhances the impact which this information
will have on the investing public.
The most obvious example of the media
acting in its capacity to effect a particular
stock is when an earning’s announcement
is pending. Wide circulation of the news,
good or bad, subjects large numbers of
investors to a simultaneous wake-up call.
Then, depending on whether the Exchange
wants investors to buy or to sell, it will tell
them how to react. For instance, when
Minnesota Mining and Manufacturing
(MMM) released its earnings in late January
1991, large numbers of investors were told
the results were “disappointing.”
It’s fascinating to see how the MMM
specialist used this announcement to his
advantage, for even before the news was
released, he had dropped the stock several
points from the previous day’s close at $85.
By the time the announcement was made
and investors had a chance to react by
predictably throwing in their sell orders, its
specialist had dropped MMM nearly 5
points. For the balance of the trading
session, the MMM specialist continued to
pick up stock from the selling that had been
caused, in part, by the media’s transmission
and characterization of the news.
The reason the MMM specialist wanted to
accumulate a large inventory was because
his stock is a component of the Dow
Industrial Average. This specialist knew that
he was going to be asked to help propel the
Dow Index higher in the coming weeks by
advancing his stock sharply. In order to
make a profit during this advance, he
wanted to make sure he had inventory
bought at a low, which he could profitably
dispose of at higher price levels. Like the
town crier bringing news of a catastrophe,
the media’s portrayal of the MMM’s
earnings as a negative helped induce the
investor selling which gave the MMM
specialist the inventory he desired.
The media to precipitate the public buying
or selling that a specialist is looking for can
quickly spread almost any news item
ranging from a new product announcement
to the initiation of a lawsuit against the
company. The critical point I would like for
you to have learned from this is that you
must take what you read or hear about the
market with more than a grain of salt. Try to
imagine how most investors would react
and how that reaction could play into
specialist merchandising plans. This will
give you another source of insight into the
merchandising objectives of specialists
which when all is said and done, must be
correctly ascertained if you are to invest
profitably.
Specialist Use Of The Media
sold stock like crazy.
Second: In 1981 when the attempt was
made to assassinate President Reagan the
news flashed across the country like
wildfire. When the news hit the floor of the
Exchange specialists were again confronted
with the option of what to do. They could
have left the market open and absorb
massive public selling, or they could close
the market.
Since they were in the midst of forming a
top in the Dow, which would occur in late
October they wanted to unload inventory
from their long-term accounts to the public
and not acquire it so they closed the
market. They didn’t want to pick up stock
from the public until prices were much
lower. Thus when they re-opened the
market the next day they rallied to Dow up
20 points when the news was positive about
the presidents recovery and continued until
the fall when they started the decline they
wanted

Specialists use the media to fluctuate the

Dow like air currents moving a hot air
balloon. They use times of great disaster to
their advantage. I will now present you with
two examples of how it works.

First: In 1963 specialists were in the middle

of a long-term bull run, which would last
until the middle of 1966. When the news of
President Kennedy's assassination came
across the news they could have closed the
market because they new the public would
panic and do to the uncertainty of there
future would sell large quantities of stock to
raise cash. This gave them the opportunity
to acquire massive quantities of stock at
bargain basement prices, which they could
unload during the continuation of the
advance over the following two years. With
this in mind they left the Exchange open,
and the public did just as expected, they