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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Shroom37 who wrote (25814)	5/12/2000 5:30:00 PM
From: e.von	Respond to of 57584

Hi Shroom, Its all in the volume and action, Institutions usually do not alert you to their accumulation. It is unlikely that you will ever see 500,000 share buys, let alone 100,000 unless of course the institution buying already owns 40,000,000sh.and they want to jack up the price to dump 4,000,000sh. An institutional player will sell 2500, 5000, 2500, 5000 etc... till the buyers finally give up trying to move thru resistance. MMs drop price, institutional player quickly buys back what was just sold, maybe 5 to 3 points lower than earlier that day and possibly in large blocks. Often times the MM will simply want to cover their ars when a big block goes thru and quickly raise the price of that stock to make it appear as if some big investor just vested in your company. Next thing you know fifteen min later your a point down, and you received the headfake. More often than not big blocks mean "I just took the money (all of it) off the table and there is nothing left for anyone." The MM doesnt even have it, so he relies on the headfake money to cover. That means nothing left for you. The only time I react to big blocks going thru, and buy, is when the stock is at its bottom fundamentally. You can be rest assured in that case that your placing a safer bet. The same goes the other way around, if it was a big buy the MM will quickly drop the price to scare all the weak hands into thinking those were sells, guess where the price will be in fifteen, out of reach. All the sudden MMs got you buying on the wrong side of the trade. I hope that helps, You may already know exactly what I'm talking about. Erick