ALFN - Toy Store On The Internet Message Board

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Microcap & Penny Stocks : ALFN - Toy Store On The Internet

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To: GPB who wrote (1840)	5/19/1999 11:19:00 AM
From: J. Ramsey	Read Replies (1) of 2136

What is a bull trap... A bull trap is a price movement run by the MM. It will usually happen near the end of a trading session when there is last minute interest in an issue. If you can get a one minute intra day chart and look at the last 30 mins of trading on ALFN for Tuesday you will see it. The market makers held the price most of the day then suddenly let it go for about 15 mins. brought it down hard to shake the weak hands and the let it go into the close. This is the first step, now they need to get out with a profit. Step two. The MM open the stock the next day and holds the price to within a tick or so of the close. At this point they are only filling buy orders at the higher price i.e. selling their shares they bought at the close for a profit and keeping everyone else locked in at their buy price or lower. when the new buys are all filled at a profit for themselves they then lower the bid and cover short positions they opened at the close of yesterday. Again at a profit. This continues until the sell orders are gone and a new price level is established for the price. The MM is out clean and with a profit. We can usually find a bull trap when there is no news or weak news put out by the company and their is sudden interest in the issue and a lack of heavy follow through the next day. It's a trap because the person who bought can not get out with a profit and the MM's a aware of this. CNBN just said Etoys will be a hot IPO looking at $23.00 open now. Good luck to all, looking to buy more ALFN around the 1.20 level.

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