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Microcap & Penny Stocks : AVBC Aqua Vie Beverage Corp.
AVBC 15.36+0.8%Nov 7 9:30 AM EST

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To: Debra&Jeff who wrote (777)3/17/1998 5:56:00 AM
From: Ga Bard  Read Replies (3) of 16988
 
Jeff it is trade jargon ... Ok in this particulare arena unlike the NYSE or the AMEX where trades are done between a buyer and a seller. This arena has what is called a "churn" which is mraket markers swapping shares. Another words marketmakers trading among themselves. Now because of this you will see double- and triple-counting or prints of volume which achieves a couple of things. It creates the illusion of liquidity in a stock. It also explains why a single day's trading in a stock may represent a major part of its float. Not a big turnover in ownership but simply trading the same shares several times in the day may have accounted for the bulk of the action.

Now one reason for this is MM to MM trading also provides creates attention by getting volume up so that it will show up on computers and attract momentum investors. Grrrrrrrr

Anyway sometime during the day you will see a "squaring up between market-markers" which is an large volume of stock that has no effect on the price and orders or standing market orders that were not posted. Not ususal to see after a trading day bell an order for far more than the high of the day to be posted. Someone made a market order and it did not make to the posting.

Read articles on the dynamics of trading. After you read the following article, which I think is required reading for any investor, you will understand why I say if you are long go long if it is a BTS stock then BTS it and if it is a momentum you better know this article like the back of your hand along with others.

forbes.com

There are lots of tactics the MM use to keep a stock liquid. You have no idea. They can create a momentum run or kill it depending on what they want to do. Getting momentum traders in helps the market maker keep the market liquid. Knowing a momentum player probably knows nothing about a stock they will be quick to jump out on any stall or possible down tick. Thus they get cheap shares from the weak, by creating a PMS (Panic Massive Selloff).

Man there could be chapters written on MM tactics. They can make 1000 shares look like 100,000. This is why I laugh when some screams a "short trap" which is done by a touter to create a "wave."
wave = wanderers absorbing volume entering, which means wandering investors are those without a clue to the company or fundamentals that absorb the volume rushing into a stock.

Now this same type investor is wishy washy and will exit in a nano-second.

Hope this explains it. Again I would not sell this stock on a bet. Plus I am to scare to BTS it because it might take off with out me getting those shares back. This is why I say I am long. Also most of us in the .04 -.12 range were accumulating this one in hopes it goes to NASDAQ so I do not see a massive panic selloff. But hey you never know greed comes into play and anything can happen.

GaBard
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