Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: The Devil Dog who wrote (789)	10/10/1998 12:24:00 AM
From: Kevin Hamlin	Read Replies (2) \| Respond to of 4467

An interesting thing to watch for is the nasty game brokerages play of dropping the price down to put through a major cross. This happens all the time...too much...and much to the angst and horror of legit investors who often get shook out in the process. For those just learning, I'll use the most recent example which happened today...that being UBS on Vancouver. This stock was trading quite steadily in the 40-60 cent range and in the past two months started coming off with the rest of the market. It seemed to settle back around the .30 range, and then in the past couple of days started to slip down. Whenever the stock seemed to get any legs at all, Cannacord would come knock it down. In the past day, it was really getting held down. Then this afternoon, Cannacord puts through a cross of over 4 million shares at .20 All of a sudden, UBS is getting bidding all over the place up to .25, with it finally ending the day at .23 With that cross out of the way, the price should move up from here quite nicely. My point being, that if you're onto a stock,....and watching the trades go through....and it's the same house selling selling selling, and then all of a sudden they put through a big cross and disappear, this is often a sign of a great game being played. The price was "pushed" down by the house to put through the cross at a predermined price. As a trader I like when this happens. It often creates a rare opportunity to buy in cheap. I do feel though for the people who were legitimate investors in the company...saw their share price tank, got out in a panic, and then watch it rise substantially after the game was over. It's not really fair in a way to them. Pull up the UBS charts, or even better, look at the flurry of trading activity after the cross went through. If nothing else, it's quite interesting. I think the UBS one today caught a lot of people by surprise as the stock was drifting down a bit anyway. Some examples are much more dramatic. I can't remember the symbol, but there was one about 3 weeks ago that was trading around $1.35 Day one...knocked to $1.10 or so. Day two...knocked down to around .80 cents...all by the same house....and the cross went through. 3 days later, as people got their confidence back and/or realized what was going on....back up to around $1.35 and then up to the $1.60 range within another couple of days. (Duane, we were both following this one. You played it way better than me.....what was the name of that?) For those who are further interested, you can pull up block trades through stockwatch and then go see the trading patterns to see what I mean. It's also good to go to the one year chart, and see what happened to the stock in the 1 day to 1 week period after the cross went through. More often than not, the price goes up. Cheers, Kevin