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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Walt who wrote (4709)	1/3/1998 1:11:00 PM
From: The Fix	Read Replies (1) \| Respond to of 26850

Morning Walt....You asked what's a "Box"? A Box in Market terms is when a brokerage house usally (the M.M.) keeps a stock trading in a certain price range. Producing a Trading Range. In recent days WSP's trading range was $1.06 to $1.14 (Approx.) The Support area was $1.06 and the Resistence zone was $1.14. This is easily done when a stock such as WSP is trading "Thin Low". The mm knows that not much is up for sale, So they can play all kinds of games and do all sorts of things. What takes place when the stock is at 1.06, Canacoors came in and putup lots of bidding board lots (The sizing went something like this...30,000 shares bidding at 1.06) The spread could have been 1.06 on the bid side and 1.08 on the offer side. That 1.08 was from tax sellers (guys like you and me) and Canaccors was just waiting for the 1.08 to give in and sell at there price or anyone else to dump at market (1.06). They would wait for a few hours and let the pins get set up and then either Canacoors or someone else (Midland, Greenslime or whoever's turn it was that day to accumulate) to run and eat up everything up to 1.14. At $1.14 than Canacoors would put up 30,000 or so shares on the offer side. If the average Joe (you or I) than wanted to sell our shares we would need to undercut Canacoors and offer out shares at $1.13 or less. We know that at 1.14 there are 30k shares in front of us. So the cycle than starts down ward to the 1.06 range and starts all over again. The Thing that you must keep in mind here and this is the most important part of a box. "Cross Trades" have the right of way always. They out do our limit/day orders. This is why alot of times orders will not get filled for us small fry's. The real reason of a box is for inside accumulation or inside dumping. In this instance I feel that insider accumulation went on with WSP. All the real offers were eaten up in a few hours and all real bids were hard to fill. This is a sign of accumulation. If the opposite took place (orders filled easily) than it's a sign of dumping. Alot of cross trading took place recently and shares were eaten up along the way up and down. In the last few days the real orders were filled "At Market" I have a friend that bought "At Market" because he was sitting on his bid for days and it never filled. Walt I hope that this helps and explains things somewhat. If any of this doesn't make sense, please ask and I'll try to explain more in detail. Here in Calgary they just got there first cold snap on New Years day. Man it's flippin cold. Fixer