Doug, you seem to either be unable to understand what I'm saying or unwilling to do so.
Your assertion that MSFT closing on the bid would have affected the stochastics is absurd. MSFT almost always trades with a spread of 1/16...for a $120 stock, that's a spread of .05%. AIRM, conversely, trades with a spread of AT LEAST 1/8...for a $3 stock, that's a spread of OVER 4%. Thus, our fictional $10,000 (83 shares) of MSFT won't move the stock more than .05%, but the same amount of capital can move AIRM AT LEAST 4%--and, if each MM is willing to trade only the 1000 shares obligation, potentially much more than 4%. Your contention that, with a previous pattern in place, "MSFT would move in an entirely different direction and/or magnitude the next trading day as a result of 83 shares" is one I'll look at again the next time I doubt the power of the individual investor.
Concerning your statement that "I work in a time frame that makes single trades AND market making activity a moot point," I think I've demonstrated how and why you should be concerned with single trades if you are using TA to evalute penny stocks. Your "time-frame?" What would that be? In this thread's charter, of which you are a founding member, it is designated at IMMEDIATE and intermediate. Market-making activity a moot point? I'd again refer you to this thread's charter, in which one person is given sole responsibility for evaluating MM activity. With each post (first IBAH, now this), you are backing away from things you've committed yourself to as a member of the group with which you ostensibly associate yourself. Are you a member of the group, or not? |
