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buywhenhurt

04/10/12 9:50 PM

#12190 RE: TheHappyVulcan #12188

the 1,000 share trade does make me want to watch closely for more volume to tell the tale. I once found the below information posted before, but have NO idea if any of it is true. And knowing it is a couple years old, M&M's may have changed their signals by now. Just as you, I was watching a stock that had a number of small share blocks trade for 2 days. A few days later, it was up about 4X! (Again, I am not saying it will happen for sure here. But do watch the buying volume closely.)

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