InvestorsHub Logo
Followers 1
Posts 66
Boards Moderated 0
Alias Born 07/16/2017

Re: ballot123 post# 52819

Friday, 01/05/2024 7:34:39 AM

Friday, January 05, 2024 7:34:39 AM

Post# of 52840
If that's the case.. the marketprice would be pulled downward to the current bid at say 0.04. Even if you put a larger order to sell just below the current posted ask (to liquidate your large position), that order would normally just float there unresolved (since the current bid is unchanged).. it just lowered the current ask somewhat. Where would the interest suddenly come from to buy at the current ask? I can't imagine a rebound where somebody buys stock at double the marketprice, only if that somebody thinks it's worth it to get a position at that price.

Your theory would make more sense if it's reversed.
- Someone wants a bigger position, but presumably there are not many shares offered at the current ask (and someone doesn't want to drive the price further up beyond the current ask, before having amassed that bigger position).
- So, someone pulls the market to 0.04 (by selling a small amount into the bid), and by doing so encourages current holders to sell larger volumes at the ask, or triggers a couple of automatic sell orders (because the marketprice is abruptly getting lower).
- More shares are offered around the current ask, so someone can get a bigger position without really driving the price beyond the current ask.

So, my theory still: there is someone who is anticipating on some possible upcoming development.
Bullish
Bullish