Just trying to tell the three bears not to get to cocky over some instinet trading
Craig, I suppose I must be one of the three bears since I brought this up, but my post was purely for information purposes - no editorial content. Personally, I am in awe of Dell's consistently superior performance, so I won't touch it from the short side. I found the trading interesting, though, because good news doesn't seem to result in sustained rallies these days (Not that "sell the news" is a new phenomenon).
As for whether Instinet trading means anything, most of the time I'd agree it does not. Volume is usually thin and the spreads wide, and frequently, those who rush to Instinet to buy or sell on news would be better off waiting.
I will take issue with Cramer's ranting on CNBC this morning about manipulation on Dell yesterday. He talked about Dell shorts "painting the tape" by pushing the offer down below his bids, shorting on downticks, and other evil acts in an attempt to create the appearance of weakness - i.e. "something must be wrong with Dell". He claimed that there was no volume to speak of and that's what allowed them to get away with their evil doings. Bull Sh^#! When I looked, I saw in just a couple minutes five trades go off totalling 300,000 shares. So what if that's nothing compared to a full day - it's still $28 million worth of stock. That's an awful lot of paint being splashed across the tape. Maybe the sellers were fools, but that is certainly real trading.
Good luck with your Dell.
Bob |
