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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Pierre Borczuk who wrote (9015)	6/18/2000 11:22:00 AM
From: Threei	Read Replies (2) \| Respond to of 18137

Pierre, My take on this: if someone has big load shares to sell, he will do it at the level where buyers are likely to take shares and other sellers are not too competitive. If he lifts offer higher, there would be less buyers and more sellers, including scalpers that bought from him couple levels lower. If stock is not in great demand, increasing selling pressure and lack of buyers might easy kill momentum, and our seller won't be able to entice new wave of buyers even at original level.. Really, if you see stock being bought at 20, going relatively easy to 20 1/4 and dropping back to 20, wouldn't you rather wait for more drop than buy it at 20 after you saw it proved it can't penetrate 20 1/4? Keep also in mind that if MM fills big client order to unload, he has usually predetermined reward and is not too concerned about exact price where he sells. His concern is more about tactics and psychology of the game, about figuring demand/supply ratio correctly, so he could dump entire order while buyers are interested. This scenario particularly important when thinly traded issue is a subject. Concerning manipulations... I am not conspiracy theory fun. When INCA flashes huge bid to inspire buying or ask to scare traders out - it's just part of the game. We can see individual traders doing the same lately, and by the way one doing so ia taking a risk to get hit. If someone shows big order trying to entice me in certain action and succeeds - well, I wouldn't complain about poker partner who faked me into wrong thinking by his face impression, would I? The only thing I can say to myself being faked like this: Don't be a sucker! Are there manipulations in the market? Of course, there is no field of activity with big money on the table where wouldn't be anything grey or black. But I am sure the term "manipulation" is misused in majority of cases. Best regards, Vadym