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Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Alain who wrote (560)	6/17/1999 3:39:00 PM
From: keith massey	Read Replies (1) \| Respond to of 5053

Crosses are a weird beast. At the bottom of a drop or during the start of a run large run you will often see one or more large crosses (in a single house or multiple houses). Often a house will throw in a market order to drive the price down to the cross point. There has been a lot of discussion on SI about what these crosses are for and there has been no good answer. Essam had an entire thread just for this discussion. Although there are several reasons why a house would want to cross stock between customers/funds/etc. one reason is so promoters or connected individuals can load up before the start of a run starts. Often the people receiving the crosses are part of the promotion team and are connected in some way to the company (although normally not on paper). The most current one I was involved with was GRM two weeks ago. The stock had been falling and then basing for a 6 weeks. I loaded up during the basing period with an average price of .39 (all buys were posted on GRM's thread). There was no big buying or selling of the stock during this basing period. Then early two weeks ago Canaccord cross 990,000 shares...the stock jumped that days and got to .74 before dropping back to the mid-50's. I am sure it wasn't just a fluke that the start of the run was the Canaccord cross. I sold all of my GRM during the run up and am now out of the stock completely. If you want I could probably dig up 100's of examples of large crosses before a run. However all that being said...just because there is a cross it doesn't mean the stock is sure to run. Often the crosses are done weeks or months before the start of a run. Best Regards KEITH