I put out a Flash Alert last Saturday on Dendreon that a subscriber immediately posted to the Yahoo message board for DNDN. It was then picked up by the Investor Village message board. DNDN stock opened sharply higher on Monday morning, and all subscribers who wanted to trade my new buy limit and target price, or the suggested options positions, were harmed.

Whoever you are, you made a big mistake. Please come forward and admit it via an email to me at NewWorldInvestor (at) gmail (dot) com. There will be no consequences, and I will not reveal your name.

Otherwise, I have to file suit and get a court order to force Yahoo to reveal your name, and if I have to go that route your subscription will be canceled with no refund and a filter enabled to block you from ever subscribing again.

Dear New World Investor:

10000. A nice round number for the Dow Jones Industrial Average to hit in the least-loved stock market rally of all time. Those who warned us in August that September is the worst month of the year, and then followed up with warnings of all the Crashes that happen in October, are now pointing out that these big round numbers usually cap the market for many months or even years, just as 100 did during the Great Depression and 1000 did after 1966.

Gee, thanks. Here’s to you, too.

The stock market and oil are going up because the economy has been pulled back from the brink of a deflationary abyss, and the U.S. dollar is falling. Gold is going up because the government deficit spending and money creation that pulled the economy back from the brink is going to be very inflationary, and the U.S. dollar is falling. The U.S. dollar is falling due to fear of future inflation due to the government deficit spending and money creation that pulled the economy back from the abyss.

It’s actually a small, neat, logical package that is not that hard to wrap your head around. We have another jobless recovery, just like the last two, and the market soared long before the unemployment peak – just like the last two. Consumer spending is terrible, but government spending is taking its place for now:

Read the rest of this entry

Great Depression, Stock market, United States dollar

Dear New World Investor:

In the June 11 Radar Report I outraged some of you and, in a June 15 article based on that Radar Report, outraged almost everyone on SeekingAlpha.com, with my statement that: “The recession is over.” I said you should not pay attention to the lagging indicators like employment, especially when cited by an otherwise bearish stock market forecaster as a reason the rally was a fake, manipulated, engineered by the evildoers on Wall Street, etc.

In my follow-up in the June 25 Radar Report I pointed out that the strength in the leading indicators and the coincident/lagging indicator confirmed that the recession ended in June. When I posted that as an article on SeekingAlpha.com on July 7, the howling doubled. No one actually said: “Off with his head!” But it was close.

So, in the spirit of “I never forget a mistake, that way I can make it over and over” I decided to cover the third group of economic indicators published by The Conference Board: The Coincident Economic Index. This is a bit trickier, because while the leaders turn up before the economy turns up, the coincidents are, well, coincident. So I had to forecast what the four components of the Coincident Index will look like for July, August and September in order to be sure the recession ended in June. I did that, and as my teen-age babysitter would text:

Read the rest of this entry

Business, Coincident Economic Index, Conferences, Economic growth, Goldman Sachs, Gross domestic product, Stock market, United States Department of Commerce

July 14, 2009

Mary Schapiro, Chairman

Securities & Exchange Commission

Dear Chairman Schapiro:

Today you said you are taking steps that will reinforce your focus on investor protection and market integrity. If you do not investigate, prosecute and imprison the conspirators behind the April 28^th bear raid on Dendreon, no one is going to believe you. I sent the letter below to your Enforcement Division many weeks ago. A complete description of how the bear raid was pulled off has appeared on the Internet. One of the original perpetrators posted in advance that the raid was coming. This is a RICO case. Do something about it. (Also see http://www.deepcapture.com/michael-milken-60000-deaths-and-the-story-of-dendreon-chapter-1-of-15/ You are up against thugs and the Russian Mafia, and everyone in the stock market knows it and expects you to do nothing, as usual.)

[followed by SEC letter at bottom]

* * * * *

July 14, 2009

Senator Maria Cantwell
Via Fax: (202) 228-0514

Senator Patty Murray

Via Fax: (202) 224-0238

Congressman Jim McDermott

7th District, Washington State Via fax to: 206-553-7175

Dear Senators and Congressman:

A company in your state and district, Dendreon Corp. of Seattle, was the victim of an organized bear raid on its stock in the Nasdaq Stock Market on April 28. The purpose of the bear raid was to “run the stops” of individual investors, many of them Seattle residents, to force the sale of their stock at low prices. The bear raid ran the stock from $25 to $7.50 in 75 seconds. More than 4,000 trades were placed, totaling three million shares, or about 50% of Dendreon’s (spectacularly high) average daily volume, causing Dendreon’s share price to lose more than 65% of its value. The conspirators then bought the low-priced stock to cover their naked short sales and closed the stock at $11.81. The next day the stock opened at $27, the conspirators unloaded their stock, and your constituents were fleeced. DNDN stock closed that day at $22.84.

I immediately wrote the SEC and they have done nothing to investigate this obvious manipulation. Nasdaq has done nothing after a 30 minute investigation. I am asking you to hold the SEC’s feet to the fire on this one, because unlike most of these manipulations this one left clear footprints. Some braggart posted on the Yahoo message boards that the raid was coming, and predicted it almost to the minute. They may have been a low-level conspirator, but for once the SEC has the key to break this ring of conspirators, and they are not moving forward.

Below is my letter to the SEC. This game has gone on for years, and the numbers aren’t as big as the Madoff Ponzi scheme, but it is exactly what the SEC regulators should be pursing if they want to repair their image on Wall Street as a toothless agency.

And please remember that the company, its shareholder employees, and many other shareholders are in the Seattle area. Ask the SEC why they are not investigating!

Very truly yours,

[followed by SEC letter at bottom]

* * * * *

July 30, 2009

Senator Ted Kaufman
Via Web Mail

Dear Senator Kaufman:

Thank you for keeping the pressure on the SEC to rein in short selling. For many years I published the Overpriced Stock Service, a leading short-sale newsletter. While I continue to think there is great value in selling short companies that are drastically overpriced and/or frauds, there is absolutely no need for the short selling abuses we have seen: Naked short selling, coordinated rumor-mongering, “running the stops,” and so on.

Wall Street does not take the SEC seriously on this issue because they don’t investigate even the most blatant examples of abusive shorting, and they won’t publish the list of short sellers in a company’s stock, just as they publish the list of long holders. A recent example of a blatant situation that the SEC refuses to investigate is Dendreon Corp, the victim of an organized bear raid on its stock in the Nasdaq Stock Market on April 28. The purpose of the bear raid was to “run the stops” of individual investors to force the sale of their stock at low prices. The bear raid ran the stock from $25 to $7.50 in 75 seconds. More than 4,000 trades were placed, totaling three million shares, or about 50% of Dendreon’s (spectacularly high) average daily volume, causing Dendreon’s share price to lose more than 65% of its value. The conspirators then bought the low-priced stock to cover their naked short sales and closed the stock at $11.81. The next day the stock opened at $27, the conspirators unloaded their stock, and the average investor was fleeced. DNDN stock closed that day at $22.84.

I immediately wrote the SEC and they have done nothing to investigate this obvious manipulation. Nasdaq has done nothing after a 30 minute investigation. I am asking you to hold the SEC’s feet to the fire on this one, because unlike most of these manipulations this one left clear footprints. Some braggart posted on the Yahoo message boards that the raid was coming, and predicted it almost to the minute. They may have been a low-level conspirator, but for once the SEC has the key to break this ring of conspirators, and they are not moving forward.

Below is my letter to the SEC. This game has gone on for years, and the numbers aren’t as big as the Madoff Ponzi scheme, but it is exactly what the SEC regulators should be pursing if they want to repair their image on Wall Street as a toothless agency.

Please ask the SEC why they are not investigating! Also see http://www.deepcapture.com/michael-milken-60000-deaths-and-the-story-of-dendreon-chapter-1-of-15/ The SEC is up against thugs and the Russian Mafia, and everyone in the stock market knows it and expects them to do nothing, as usual.

My letter to the SEC:

The very unusual 65% drop in Dendreon (DNDN) shares on April 28 in a period of 75 seconds, just before they reported excellent clinical trial results, is worth your investigation. I have been a professional investor for 39 years, and this looked like an illegal conspiracy to run the stop losses. The stock went from around $23 to $8 in less than two minutes, and then was closed for trading as it rebounded to the mid-$11s. The next day, after the results, it opened up 100%. But many investors had been stopped out of the stock with “low” stop losses in the teens. One of my subscribers set a stop at $16.50 and was filled at $8.

This sort of organized market manipulation rarely leaves tracks, but this time it did. A new poster on the Yahoo Message Board for DNDN warned of a bear raid almost to the minute. How did he know? Who does he work for?

Here is his first post:

28-Apr-09 11:07 am   32.  URGENT ALERT BEAR RAID @ 12 30 pm central Today
Expect Massive BEAR RAID this afternoon @ 12 30 pm central last trade 24 suggest you sell short into strength MASSIVE BEAR RAID coming.. TODAY
Business & Finance > Investments > Stocks (A to Z) > Stocks D  >  Dendreon Corporation (DNDN) monthaphumchare…

Here are some others from the same morning:

27.  as a COURTESY I am alerting this board DNDN BEAR RAID today
u should be positioning on the short side of DNDN right now at 24 and on any additional strength ahead of conference by 12 30 stock will be in the throes of a MASSIVE BEAR RAID smart $ has a BIG…
Business & Finance > Investments > Stocks (A to Z) > Stocks D  >  Dendreon Corporation (DNDN) monthaphumchare… 28-Apr-09 11:27 am

28.  See u @ 17 today MASSIVE BEAR RAID
suggest you position @ current price 24.08 for expected massive bear raid today 12 30 pm central
Business & Finance > Investments > Stocks (A to Z) > Stocks D  >  Dendreon Corporation (DNDN) monthaphumchare… 28-Apr-09 11:20 am

29.  CNBC suckering U in Bear Raid coming
MASSIVE BEAR RAID today 12 30 pm central
Business & Finance > Investments > Stocks (A to Z) > Stocks D  >  Dendreon Corporation (DNDN) monthaphumchare… 28-Apr-09 11:12 am

30.  Re: URGENT ALERT BEAR RAID @ 12 30 pm central Today
HIGH Probability stock trades down to 17 today on Bear Raid after presentation Outside chance stock drops 50 %
Business & Finance > Investments > Stocks (A to Z) > Stocks D  >  Dendreon Corporation (DNDN) monthaphumchare… 28-Apr-09 11:10 am

31.  Re: URGENT ALERT BEAR RAID @ 12 30 pm central Today
Suggest you SELL SHORT last trade 24.09 continue to sell short on any additional strength ahead of 12 20 pm presentation by 12 30 pm today you will witness a MASSIVE BEAR RAID DNDN
Business & Finance > Investments > Stocks (A to Z) > Stocks D  >  Dendreon Corporation (DNDN) monthaphumchare…

Please don’t give this one a pass. Many hundreds of individual investors were harmed by an obvious market manipulation, most likely involving more than one entity and therefore a RICO violation.

Very truly yours,

Business, Dendreon, Investing, Russian Mafia, SEC, Stock market, US the Securities Exchange Commission, Wall Street