To: On the QT who wrote (76824 ) 11/6/1998 11:44:00 AM From: Chuzzlewit Read Replies (1) | Respond to
Good morning QT,Lets look at what we do know. Dell can show a buy for 10,000 shares at, let us say $75.00, then a number of smaller sells at, lets say, 6 sells of 1000 shares at $ 75.250, 75.250, 75.125, 75.125 , 75.0625 and 75.00. In this example, we see that 10,000 shares were bought and 6000 shares were sold. So while the stock price remains the same, the net accumulation of stock, 4000 shares are temporarily taken off the table. Now it is reasonable to conclude that large blocks of buys are more likely to be institutional buys as opposed to ordinary buys. If they are institutional buys, they more likely will remain off the table, for longer periods of time than ordinary buys. This then creates a smaller pool of available stock and most likely, if this accumulation continues,the stock price will tend to go up.
