>>how do the money managers keep the price low? by selling the stocks? they'll have to sell a lot right? and then they buy the stocks back? i dont understand. can you explain how this works? thanks.<<
first, a dumb question. When people on the thread talk about
an MM - is this a Market Maker or Money Manager?
To answer your question...the trading pattern for a few weeks
has been 'accumulation' by the money managers or fund managers
(there actually could be a difference, but for my explanation
it doesn't matter). The 'accumulators', whoever they are, have
been buying this stock big time...these have to be the institutional
buyers who are buying blocks. Then the periodically stop
buying, so that 'weak hands' can sell. The stock ends up going
downward when in actuality it's being purchases in blocks action
massively. The smaller lots are being scared out of holding
the stock, because they don't understand why the price keeps
dropping, especially after a good earnings report.
The 'weak hands' have slowly been bought out...so selling is
drying up little by little. If the 'accumulators' were to
just place buy orders randomly, the stock would probably fly
up to 35+ in days or maybe hours.
Anybody who wants to control this stock is very aware of
this point. Look at Wednesday day chart at 12:00pm and
see how fast it skyrocketed. Also, look at some charts
from last week...I use E*trade charts and the daily ones
only go back 5 days....
So, the money managers are not selling. They are buying
aggressively, without letting the price zoom up. Poor souls
like us are so exasperated,because we don't understand why
the stock is dropping, that we are willing to dump
this stock as soon as we can..."I swear when COMS gets back to
where I bought it at $31, right after a great earnings report,
I'm gonna sell this dog. I can't understand how this stock
hasn't gone up after a 5+ pt jump after earnings (6/25)."
This is what the unknowning investor is saying to himself.
Hey, it's friday. I'll come back tomorrow, and see if any
of this made sense to anybody. Also, I will read up on
options and see if I can understand what you guys were
talking about...my brain is fried,
time for din din and r&r (no dogs today q.<g>). |
