“A lot of times when I was positioned short, meaning I needed [the market] down, I would create a level of activity beforehand that could drive the futures. It doesn’t take much money. Or if I were long and I wanted to make things a little bit rosy, I would go in and take a bunch of stocks, make sure that they’re higher, maybe commit $5M in capital to do it and I could affect it… No one else would ever admit that, but I don’t care…You aren’t allowed to foment, but you can do it anyway because the SEC doesn’t understand it. You can call a bozo reporter and tell him that a competitor is going to come out with a great product, and that can keep the stock down as well…”

Jim Cramer, Founder and Chairman of TheStreet

On June 4, rumors started spreading about a possible merger between Wynn and MGM. Wynn’s stock jumped from $102 to $109 that day, or 7%. Guess what? We’re back down to $102 again. MGM also jumped on the reported rumors. But now the stock is down below pre rumor level. I guess the rumor mill died down.

The really interesting thing about this particular rumor, however, is that the only source for it is Jim Cramer, who simply blurted out that there were “rumors” on his Mad Money show on CNBC that day. Then, Cramer’s site TheStreet published a piece highlighting the fact that Cramer had said there were rumors about a possible merger between Wynn and MGM, on the same day. TheStreet even highlighted the Wynn move as its “Move of the Day” with a little 57-second video ditty about it.