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"As Predicted," Certain Companies Involved in the FDA Hearings Showed Rises of 6-10% After All the Bad News Was Out
With stocks driving higher during the last few months following each downward reaction, the situation was ready made for Livermore. The Street stories are that he went short of a large line of issues such as:– United States Steel, Montgomery Ward, Simmons Co., General Electric, American and Foreign Power and half a dozen other of the markets pivotal issues. He then started his familiar hammering tactics under which the market first faltered, then broke
Cutten, the Fishers, Durant and others of the group known in Wall Street as the “Big Ten” were large holders of these particular stocks and have seen their plans and pools wrecked by what were natural economic developments, coupled with much shrewd short selling.
One of the tales started and circulated in the financial district yesterday, was that Livermore had the backing in a bear campaign of Walter P. Chrysler, who was said to be piqued because he suspected that the Chicago-Detroit group had hammered at Chrysler motors in the market, driving it down below 55 from its high of 135 this year.
The outstanding Bear leader appears to be Livermore, who has regained a tremendous fortune through adroit short selling, and who, temporarily at least, is regarded as being exactly “right” on this market. Cutten, who started as a grain trader, has amassed an estimated 100 million or more, in the stock market during the last three years of bull markets. Cutten is the leader of the bull faction and is temporarily at least regarded as “wrong” on the market.
Mr. Cutten was in New York and watched the market from the office of the head of the stock exchange. His expressed opinion to friends is that much of the selling had been hysterical, and that he believes good stocks should be held for higher prices. He has not changed his formerly stated position about the long distance outlook.
Source: New York Times, quoted by Stock Market SolutionsIt also brings to mind the following quote from the 1874 "Bulls and Bears of New York", by Matthew Hale Smith:
p 69: "Milking the street". This is a combination to put the price on the Street down so that parties may buy. The stock is then Bulled by the holders who instantly sell out. ... In the excitement the combination reap a golden harvest. They have milked the street"