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Re: BoilerRoom post# 29636

Friday, 12/18/2020 8:26:01 AM

Friday, December 18, 2020 8:26:01 AM

Post# of 34212
Certain things to consider with the new CE/etrade policy:

1. How much of the stock is traded with etrade accounts - if a large % are using etrade that means quite likely that a large chunk of liquidity that could be deployed to buy the dip is not even usable - ie they can only sell not buy to support.

2. Having greater diversification of brokers on a ticker allows greater bid support to have a lessened ultimate capitulation which in theory can go 000s if there is just no buying ability or desire (however the more depth of brokers the less likely the odds are immediately)

3. So in essence this is a double attack - not just on sell only which induces selling pressure yet inability to render liquidity within etrade to deploy on bid to get avg down/flip.

Furthermore anyone who considers the above would be wary to deploy capital outside of etrade on a CE ticker if a large chunk of their exit potential ie (etrade buyers to sell into is gone).