To The Moon

$SUPER MICRO COMPUTER INC(SMCI)$ 

**SMCI Under Market Manipulation**

While looking at the order book, I saw a strange and awkward puzzle of some mega offloader selling 59.33k shares at $40.24.

Plausible explanations:

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### 1. Profit-Taking at a Target Price  

### 2. Artificially Creating Resistance to Accumulate Shares at Lower Levels  

### 3. Institutional or Algorithmic Selling  

### 4. Provide Liquidity  

### 5. Psychologically Encourage Hesitation  

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This is what I think:

The 59.3k sell order at $40.24 likely serves as a manipulative strategy rather than a genuine intent to sell. Alternative explanations like profit-taking (Point 1), gradual selling to avoid market impact (Point 3), or regular liquidation (Point 4) are unlikely, as they don't justify offloading such a large block in one go without utilizing DCA (dollar-cost averaging) methods.

The most plausible explanation is a combination of Points 2 & 5.

1. The large sell wall is intended to test market strength, slow down bullish momentum, and encourage short-term selling pressure or panic among traders. By creating the illusion of strong resistance at $40.24, the initiator can trigger a pullback and assess demand levels.

2. The visible order sends a strong bearish signal to retail traders and algorithms to prompt selling or hesitancy to buy, suppressing the stock's momentum. This creates an opportunity for the initiator to accumulate shares at lower prices.

3. Once the desired sell-off occurs, the initiator may cancel or adjust the order and buy back shares at a discount, eventually removing the resistance to allow the stock to rally again.

A.k.a. Classic tactics employed by institutions or large traders to manipulate price levels, gain a strategic edge, and profit from market psychology.