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Re: TheRagman post# 7357

Wednesday, 06/01/2011 12:18:48 PM

Wednesday, June 01, 2011 12:18:48 PM

Post# of 19899
Hey guys, for those of you who may believe that there is an MM code; there was just a 500 share block transaction go thru thats $1.65. In this case the trade hit the ASK, which if you go by the theory, it would be a gap up. I havent seen this kind of low trade in a very long time. Actually i pointed it out a day before the initial run in April, that we were getting all these very low blocks go thru, then all of a sudden we get this massive run. Not saying its 100% accurate, but its something to think about. This has been posted several times, but here it is again.

Penny traders believe that Market Makers (MM) will "signal" moves in advance buy using small amounts of buys or sells as "signals". The "signals" are such a small amount of shares (worth no more than 5 or 10 dollars) that no trader would have paid a commission that costs more than the amount of shares bought. The "signals" are from one MM to another

100 I need shares.
200 I need shares badly,but do not take the stock down.
300 Take the price down so I can load shares
400 Keep trading it sideways.
500 Gap the stock. This gap can be either up or down, depending on the direction of the 500 signal.

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