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Re: Slimjim48 post# 20098

Thursday, 05/19/2022 12:18:18 PM

Thursday, May 19, 2022 12:18:18 PM

Post# of 30679
Think Gas Prices at the moment

As everyone is complaining about the gas prices, the administration releases oil from the SPR. Then what do they do? They send loads to Europe, Imagine that.

https://oilprice.com/Latest-Energy-News/World-News/More-Oil-From-US-Strategic-Petroleum-Reserve-Heads-To-Europe.html

People say, Oh the price of oil has dropped, but the gas prices haven't. Nobody looks at the whole picture. They think that a BP gas station is BP. The gas stations are independently owned and make maybe a couple cents per gallon.

They buy their gas in bulk. They set the price at the pump for what they bought that load for. The tankers hold 10,000 gallons. I wouldn't drop the price and lose money for each gallon just because the price of oil fell.

As for the chart, it is an excellent tool to trade by. Buy when there is despondency through hope and sell into the excitement and thrill. This is the OTC. Trading that chart is the only way to make money.

Do the MM manipulate, yea somewhat. They do not hold inventories of stock, some maybe. They are obligated to make a market, so when a stock is running they have to sell shares to the buyer. They are required to make profitable trades for themselves or they lose their job. So, yes they walk the price down to cover their positions. But the notion that they are doing that now with XALL is nonsense.

Think of it this way. I want to buy a truck. The dealer is asking $70K. I don't want to pay that much so I offer $60K. Same theory with an unwanted stock as XALL at the moment. And for much of the OTC for that matter.

When a stock is running and you want to trade it. Shadow ASCM. When they jump on the ASK when there is volumes of buying coming in, SELL. Same in reverse.

I build positions. One way I do that is basically shorting the positions that I hold. Sell at the beginning of the day and buy it back later in the day cheaper. You can assign those shares to offset each other and not "disturb" your position. You can either take the cash or add shares.

And Slim. If my previous post came across as condescending, I apologize. It was meant to be facetious.