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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: gpowell who wrote (18849)	1/15/2000 1:52:00 PM
From: E. Davies	Read Replies (1) \| Respond to of 29970

What is it in the price action that leads you to this conclusion? Consider the following a response to Grace as well. Every day I sit and watch every trade with ATHM. I see who is buying & selling and when (within the obvious limits of L2). There are roughly 3 major sources of sellers who routinely will sit alone on the ask at every critical moment absorbing tens of thousands of shares of buying. The most classic one is the seller who is hiding behind INCA (even more anonymity that way). Say for example after a long battle the stock breaks through a major resistance level- in any other stock you would see a quick 1/2 point surge while the traders jump in. What happens with ATHM? You get 20 seperate sources of buyers at 38 1/16 totaling 15,000 shares bid and one (1) guy on INCA with a 1000 share offer at 38 1/8. People start to flood INCA with buys (200-500 shares usually). INCA goes 1000 ->600->300. Next? Boom! INCA goes right back to 1000 (auto refresh). Repeat. Repeat. Repeat. Repeat. All the other sellers have moved their asks up to 38 1/2 while INCA sits there at 38 1/8. This can go on for a couple of minutes until finally all those people who just bought at 38 1/8 start to get worried. Finally they join in with INCA and place sells @38 1/8. Then they start turning on the mass of buyers offering 38 1/16. With the momentum finally crushed the stock drops back down to 37 3/4. The most telling thing? INCA disappears the moment the tide is turned. His deed has been done. It happens day after day after day for weeks on end. (Except Thursday) This is no accident, this is no institutional seller. It is deliberate and concious. Pretty damn obvious too. Eric