Nice analogy,but not true at all...a market is a complicated game, were rules are made to break...I am a former broker and OTC trader ( 1965-1972);before Nasdaq was everywhere...MM do conspire to rig prices all the time, and still do...of'course they are protecting their position and also their clients positions. However, if you move with the MM's, you'll do well, though it's hard to figure many times what it is they are doing.
I bought ASDS at $9, only to see it come down to $7 15/16 on the same day...later that day I bought more at $ 8 3/16, with the intention of selling at above $9.....the volume convinced me otherwise...still holding.
I found ASDS from the volume leaders on the day of the offerring...hell 11,000,000 shares?
Now what: mm's will shake out a lot of people on Monday, whether the stock goes up or down...I have not seen many big blocks the past few days, such as 25,000 or higher.
Volume and float: in the old days, small float stocks moved much higher with good news, especially if the shorts got squeezed. Two classic cases I quote, when Allyn Wood Steel went from $6 to $160 in months and Andrea went from $3 to $120+ in less than 3 months.
What to do now: I am waiting for any fundamental news in the next three weeks;past the QP. Then decide if I am going to be in this stock....I must say that I was lucky this time because I happen to see ASDS on Nasdaq volume leaders.
This stock has to be in my top ten for upside action...My best one will never be topped: 13-30 cents sold at $9 3/8. Bought two mercedes and a new house ($57,500).
good luck to us all
sam |
