Imagine that you were an investor in Apple… someone that believed strongly in the stock and wanted to buy a bit more of those shares a few weeks before the earnings.
The Problem: Shares are so darn expensive, the stock is up like 50% this year alone…
How could someone in such a position be able to buy more $AAPL at a decent price?
How about planting a rumor in a few places that the $AAPL earnings are going to be a big disappointment?
Then hope those rumors will be talked about in the mainstream media, republished in a few places:
Then this happens:
That gives person “X” the opportunity to buy a lot more share of $AAPL before the earnings actually are reported
And the stock goes right back to where it was:
So please tell me, do you think this is actually happening? I’m 100% convinced… Maybe not in this specific case (such things are VERY difficult to prove). But some funds have enough power, influence and incentives to try such a tactic….