Chz,
"""I was unaware that AOL continues to trade on the NASDQ. By the tone of your post, you seem to subscribe to the manipulation theory of stock price movement, can you please show me using numbers how it is possible for anybody to do this profitably, """
This is how the market works, it's not manipulation from the standpoint that most novices try to impart. When there is a large purchase expected the MM's need shares and will move the price to take out the stops. If you place a stop ten points below the current price you are telling the MM that you are willing to take that amount for your stock, nothing evil, just sending a message to the MM who will fill your order. The specialist "book" is confidential so no one knows where the stop orders are but if you enter a stop through e-trade the traders there certainly know where it is. Stock prices are quoted in several places simultaneously and you can place your order where you get the best price and that price gets printed. There are several trading markets in addition to traditional brokers, Island is one that is available to the traders and the price may be different that the quote we see. E-trade, datek, and others do their own trades when they have orders on both side of the trade, check your next statement an look for the code number "1" on the statement and that tells you your broker did the deal himself either will a cross order or a short sale (on a purchase)
I am not implying this is a bad thing, only pointing out that this is how the market works and it wouldn't work without it.
cdaiseyPhD@hit_the_stops.com |
