KAT Exploration Inc (KATX)

[Eagle777]

FORM T TRADES

That is the best practical real life explanation on Form T trades out on the net, IMO. I've had it bookmarked for the past year.

I've posted before how sophisticated traders use MM's acquire, or unacquire :), for them.

To understand that form T explanation fully, you have to also understand the different advanced order types that go with it. Especially when trading thin pinky stocks, experienced traders will use order types known as "RESERVE", PEGGED (vwap), DISCRETIONARY, "NOT HELD", etc., letting the MM or broker (it's done via software today) do the work with parameters.

Note what I highlighted in red below and then apply that to the 1.6 MILLION share trade posted at 2.52 end of day on Friday. It is pretty evident that is was a BUY! I expect a PR very soon and this was pre-PR loading.

You can pretty much tell whether the Form T trades are from large block buyers are sellers by looking at the price at which the trade was entered. If it is at the lower end of the day's price range, and the stock had been under pressure that day, it was probably from a seller. By the same token, if it was printed at the higher end of the range and the stock had been strong that day, it was likely to have been from a buyer.