Painting the Tape, ABTG
over the past several days, i've noticed that mms are painting the tape for ABTG. for example, on 3/16/2004, right at the close, a mm bought a mere hundred shares at .40 cents, five cents above the ask.
why do they do this: my thoughts
it's not for our benefit, that much i'm certain of.
painting the tape really blows the chart up, making the stock less interesting to technical players. notice how that 100 share sale at .40 completely changes ABTG's chart; now, rather then showing a coiling pressure against a resistance level, the chart now looks choppy, like its still consolidating. then, on the 18th, ABTG had a slightly down day, and so the chart reflected the hint of downward pressure, perhaps enticing some selling. by extension, of course, this is misdirection. it's highly possible mms are trying to shake, to capture shares for themselves, in preparation for a run.
nice technique, and cheap too, cost them $35.00 to ruin the chart. it's my opinion that some of the best mms around are working ABTG during this period. its a real lesson for traders, imo.
