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Gold/Mining/Energy : Daytrading Canadian Stocks in Realtime $3.00 or less

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To: 1st.mate who wrote (2683)	1/29/2001 8:23:59 PM
From: russet	Read Replies (2) of 4065

"Why do you see large crosses before a run up on a stock?? What is the function of same and utility?" If someone with a large quantity of stock wants to get out, they will sell their stock into any rally, as well as hitting the bid continuously which artificially depresses the price of the stock below the level which the rest of the market would price it. Brokerages can be involved to find buyers for the overhang, but many times the buyers will want the stock priced at a discount so selling will commence until the buyer(s) price is met, then the cross occurs. Once the overhang is gone, the market finds a new equilibrium,...many times at a higher price. A good example of this, is end of year tax loss selling of a stock. You showed a good understanding of this when you posted your long list of stocks in December that you felt were artificially depressed. Now many of them have rebounded once the overhang of tax loss selling was over. Another explanation is also possible. When a private placement or other share price offering is done, those shares generally are released to the market at one time. Those shares usually show up on the ticker as a large cross on a day specified by a newsrelease. The brokerage then releases the money to the company which the market usually takes as a positive because the company gets a cash injection to allow it to proceed with its business plan,...so the stock price goes up. There are other types of transactions that result in a large cross, and are generally viewed as positive by the market. The more important question becomes,...how long will the run up continue? Knowing why the cross occurred, gives you a good idea,...phone the broker involved and find out the reason for the cross, most will give you a general idea.

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