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Technology Stocks : WAVX Anyone?

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To: Klingerg who wrote (1938)5/6/1998 12:29:00 AM
From: Pure Folder  Read Replies (1) of 11417
 
I'll venture an explanation since no one else has yet done so, though hopefully someone more knowledgeable can confirm it or can check with a broker he or she knows.

The black background on the table you're viewing apparently means it is an out-of-sequence (or late) trade, right after the closing bell, presumably so that it will have no effect on regular trading activities. Assuming it is not some type of aberration, and given the size of the trade(s), I suspect it is one market-maker selling a large block to another pursuant to agreed formulas tied to market price rather than per the laws of supply and demand. Maybe a new market-maker is getting on-board or one is bowing out altogether. I'm obviously speculating, but I tend to doubt it is significant to us.

I wonder if anyone else noticed what I seemed to be seeing in the last half-hour of trading. Most trades were going through at the bid, yet the ask stayed firm at $3.30 and the bid kept rising--3 7/32 to 3 15/64 to 3 1/4 to 3 17/64 up to 3.28.

Usually selling pushes the bid down, and then pushes the ask down. Neither occurred in the last half-hour. Was there a large purchase before the close, does anyone know? Also, generally the market-maker will widen the spread in the last ten minutes or so to take advantage of those desperate to get in or out before the bell. Our market-maker seemed to be methodically accumulating shares, taking out the most eager sellers first and working his way up. It may relate to completing the afterhours trades to which you alluded. I found it particularly bullish in my limited experience with these things.

Pure Folder
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