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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Jim Bishop who wrote (40095)	3/30/2000 12:55:00 AM
From: Jim Bishop	Respond to of 150070

Rob Rak - your About.com Guide to: Day Trading How To Spot the Herzog Pump 'N' Dump The components of one particular fake out move I often see the wholesaler Herzog (Level II ID HRZG) use. Difficulty Level: Hard Time Required: 5 minutes. Here's How: 1.Find a not heavily traded (i.e. several hundred thousand shares at most) Nasdaq stock with little or no major market maker (MSCO, MLCO, GSCO, SBSH) participation. 2.Now narrow down the list to those stocks which HRZG seems to be especially active in that day. 3.Wait for a big bid or offer from HRZG. Something like 509 (50,900 shares) at the inside market or one level away. It's usually an odd looking number, and huge relative to that stock. 4.Now look for HRZG on the other side of the market. If he's got a big bid in there, find him on the ask. Conversely, if on the ask find his bid. 5.If he's on the other side of the market at the inside or one level away with a size of 1 (100 shares) then his big bid or offer is usually bogus. 6.If the size is on the bid he is generating excitement and buyers so he can sell stock of a large order he needs to work. The opposite for a big offer. 7.If he was truly a buyer he wouldn't be so close to the inside market on the ask. He'd be several levels away. 8.And he wouldn't show the true size, which makes his job harder. He'd hide his intentions and work the order. Come on, if you had to buy 50,000 shares of a 200,000 daily trader, would you tell everyone? 9.The best bet is to trade against his size. That is short against a big bid and go long against a big offer. He'll usually drop that number and the stock will tend to move.