From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2199 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Wednesday, March 13 2002 Volume 02 : Number 2199 In this issue: Re: [CANSLIM] Microcap Question Re: [CANSLIM] Microcap Question RE: [CANSLIM] Date: Tue, 12 Mar 2002 15:46:54 -0500 ---------------------------------------------------------------------- Date: Wed, 13 Mar 2002 08:30:24 -0500 From: "Rob Miller" Subject: Re: [CANSLIM] Microcap Question This is a multi-part message in MIME format. - ------=_NextPart_000_00C3_01C1CA69.52288A90 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thanks Tom. On a thinly traded Nasdaq microcap stock, is it possible = that there is only one market maker? If so, I can see how the bid might = be manipulated. Is there any way to find this out? Rob - ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 12, 2002 9:33 PM Subject: Re: [CANSLIM] Microcap Question OK, I am home and will jump in here.I will try not to get too = technical or windy. First, keep in mind that NASDAQ and NYSE/AMEX work differently. The = first is a population of independent market makers, each with their own = bid and ask price. The latter is generally represented by a floor = trader, who represents the "book" (all bids and offers) on a particular = security. In both cases, what you "see" on quotes / live quotes is the best bid = (highest price) and best offer (lowest price). With a stock on = NYSE/AMEX, typically the same floor trader is responsible for both = prices. With Naz, the bid may be one firm, the ask another.=20 When you enter a Naz order, the firm holding your order can either = execute it themselves, or farm it out to another firm. But either way, = you should always get the best bid (highest) or ask (lowest). Exceptions = would occur when you have special conditions on your order, such as AON = (All Or None), or a limit price. So a buy order of 6K at a price of .99 = might not execute if the best offer was only good for a few hundred = shares, and the next best offer was at 1.01. On the other hand, the same = order to buy 6K shares at "market" might well have executed at 99 cents, = because a market order will take precedence over a limit order. At = worse, it might have executed a penny or so higher in most cases. Orders up to 1,000 shares can be automatically executed against = another firm using SOES (Small Order Execution System). These can happen = at lightening speed, even faster than that market maker is able to = adjust their quote. I have seen a MM offering 5K shares get hit by SOES = so fast that they lose 7 or 8K shares before they can raise their offer. = Often this may force them then to go in and bid higher for stock to = cover the difference. I have also often seen a MM that is not paying = attention, and has a bid or offer out there for 100 or several hundred = shares, and not realize that they have become the best price. So their = quote appears as the "best", but it's not real because it's so small in = size. A MM can drop his bid to try and force execution of some stop loss = orders, but he only knows about those stop loss orders on his own books, = he cannot see all Naz orders. Nor can he cause other MM to drop their = bid, and it still takes an execution, not a bid, to trigger a stop loss = order. Even if he gets sell or stop loss orders, he must still honor the = best market bid price (or give it to another MM) until that falls to his = new level. I haven't sat on a Trading Desk for nearly four years, so some things = may have changed, but I think a Broker Dealer still has 90 seconds to = report each execution to NASDAQ, and cause the resulting print. So in = that time interval, on a volatile stock, you could see the display of = the best bid and ask change several times, and appear to be out of whack = with the eventual print of a prior trade. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Rob Miller=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 12, 2002 1:24 PM Subject: Re: [CANSLIM] Microcap Question Ian, Thanks for answering my question. I wasn't aware that a market maker = could ignore the highest bid like that. If I understand you right, a = market maker can drop the bid to a point where a number of stop orders = will be executed, allowing him to accumulate shares, despite the = prevailing bid remaining at the higher price. So if I had the = prevailing bid, he can force sellers to take a lower price even though I = was willing to pay a higher price. That sounds unethical as well as = illegal. Rob =20 ----- Original Message -----=20 From: Ian=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 12, 2002 1:09 PM Subject: Re: [CANSLIM] Microcap Question Often times, you will see that activity in microcaps as the market = maker takes out stops set at $6.99 and buys some shares. You will = frequently see it right before a volume surge - they see some volume = bids coming in, and quickly drop the price in order to accumulate some = inventory by taking out stop-loss orders. Last week, I was trying to buy shares in a penny stock (my first in = years, but all the CANSLIM characteristics save the low price). The = bid-ask was 0.96 x 0.99. I but in an offer to buy another 6000 shares at = 0.99. I was watching a streamer and noticed that 40000 shares traded at = or below 0.99, so I assumed that my order was filled. At the end of the = day the price was 1.10, so I looked at my account and saw that I was NOT = filled! The moral is that you are subject to some nasty (unethical?) = trading practices as liquidity and price get low. The stock is at 1.40 = today, 4 trading days later :( Ian ----- Original Message -----=20 From: Rob Miller=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 12, 2002 7:20 AM Subject: [CANSLIM] Microcap Question Tom, I'm hoping you can answer this question for me since = microcaps are your main interest. I've not dealt with them much in the = past. I've been following a few microcaps (<$80 million market cap) and = I'm confused about the movements in the bid/ask prices. Assume the = spread is 7 X 7.15 with most trades, small lots, split evenly between = those hitting the bid and those taking the ask. However, the action is = slow. Then, the bid suddenly drops to 6.90, 6.85, 6.80, 6.75. Several = trades go off at 6.75 over just a few seconds, then the bid jumps back = up to 7.00, at which point the trading becomes slow again. The ask = never changes. In some cases, trades go off below the bid price. =20 I can understand when someone withdraws their bid causing the bid = to drop, but it seems strange that several trades go off at what appears = to be far below the prevailing market price. No trades, bid drops for a = few seconds, a few quick trades, then bid goes back up. What causes = this? It seems to scripted to be accidental. =20 Thanks, Rob=20 - ------=_NextPart_000_00C3_01C1CA69.52288A90 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Thanks Tom.  On a thinly traded = Nasdaq=20 microcap stock, is it possible that there is only one market = maker? =20 If so, I can see how the bid might be manipulated.  Is there any = way to=20 find this out?
 
Rob
 
----- Original Message -----
From:=20 Tom = Worley=20
To: canslim@lists.xmission.com=
Sent: Tuesday, March 12, 2002 = 9:33=20 PM
Subject: Re: [CANSLIM] Microcap = Question

OK, I am home and will jump in here.I will try = not to=20 get too technical or windy.
 
First, keep in mind that NASDAQ and NYSE/AMEX = work=20 differently. The first is a population of independent market makers, = each with=20 their own bid and ask price. The latter is generally represented by a = floor=20 trader, who represents the "book" (all bids and offers) on a = particular=20 security.
 
In both cases, what you "see" on quotes / live = quotes is=20 the best bid (highest price) and best offer (lowest price). With a = stock on=20 NYSE/AMEX, typically the same floor trader is responsible for both = prices.=20 With Naz, the bid may be one firm, the ask another.
 
When you enter a Naz order, the firm holding = your order=20 can either execute it themselves, or farm it out to another firm. But = either=20 way, you should always get the best bid (highest) or ask = (lowest).=20 Exceptions would occur when you have special conditions on your order, = such as=20 AON (All Or None), or a limit price. So a buy order of 6K at a price = of .99=20 might not execute if the best offer was only good for a few hundred = shares,=20 and the next best offer was at 1.01. On the other hand, the same order = to buy=20 6K shares at "market" might well have executed at 99 cents, because a = market=20 order will take precedence over a limit order. At worse, it might have = executed a penny or so higher in most cases.
 
Orders up to 1,000 shares can be automatically = executed=20 against another firm using SOES (Small Order Execution System). These = can=20 happen at lightening speed, even faster than that market maker is able = to=20 adjust their quote. I have seen a MM offering 5K shares get hit by = SOES so=20 fast that they lose 7 or 8K shares before they can raise their offer. = Often=20 this may force them then to go in and bid higher for stock  to = cover the=20 difference. I have also often seen a MM that is not paying attention, = and has=20 a bid or offer out there for 100 or several hundred shares, and not = realize=20 that they have become the best price. So their quote appears as the = "best",=20 but it's not real because it's so small in size.
 
A MM can drop his bid to try and force = execution of some=20 stop loss orders, but he only knows about those stop loss orders on = his own=20 books, he cannot see all Naz orders. Nor can he cause other MM to drop = their=20 bid, and it still takes an execution, not a bid, to trigger a stop = loss order.=20 Even if he gets sell or stop loss orders, he must still honor the best = market=20 bid price (or give it to another MM) until that falls to his new=20 level.
 
I haven't sat on a Trading Desk for nearly = four years,=20 so some things may have changed, but I think a Broker Dealer still has = 90=20 seconds to report each execution to NASDAQ, and cause the resulting = print. So=20 in that time interval, on a volatile stock, you could see the display = of the=20 best bid and ask change several times, and appear to be out of whack = with the=20 eventual print of a prior trade.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----=20
From: Rob=20 Miller
To: canslim@lists.xmission.com=
Sent: Tuesday, March 12, 2002 1:24 PM
Subject: Re: [CANSLIM] Microcap Question

Ian,
 
Thanks for answering my = question.  I wasn't=20 aware that a market maker could ignore the highest bid like = that.  If I=20 understand you right, a market maker can drop the bid to a point where = a=20 number of stop orders will be executed, allowing him to accumulate = shares,=20 despite the prevailing bid remaining at the higher price.  = So if=20 I had the prevailing bid, he can force sellers to take a lower = price even=20 though I was willing to pay a higher price.  That sounds = unethical as=20 well as illegal.
 
Rob      =
 
----- Original Message -----
From:=20 Ian =
Sent: Tuesday, March 12, 2002 = 1:09=20 PM
Subject: Re: [CANSLIM] = Microcap=20 Question

Often times, you will see that activity in = microcaps as=20 the market maker takes out stops set at $6.99 and buys some shares. = You will=20 frequently see it right before a volume surge - they see some volume = bids=20 coming in, and quickly drop the price in order to accumulate some = inventory=20 by taking out stop-loss orders.
 
Last week, I was trying to buy shares in a penny = stock (my=20 first in years, but all the CANSLIM characteristics save the low = price). The=20 bid-ask was 0.96 x 0.99. I but in an offer to buy another 6000 = shares at=20 0.99. I was watching a streamer and noticed that 40000 shares traded = at or=20 below 0.99, so I assumed that my order was filled. At the end of the = day the=20 price was 1.10, so I looked at my account and saw that I was NOT = filled! The=20 moral is that you are subject to some nasty (unethical?) trading = practices=20 as liquidity and price get low. The stock is at 1.40 today, 4 = trading days=20 later :(
 
Ian
----- Original Message ----- =
From:=20 Rob Miller
To: canslim@lists.xmission.com= =20
Sent: Tuesday, March 12, = 2002 7:20=20 AM
Subject: [CANSLIM] Microcap = Question

Tom, I'm hoping you can answer = this question=20 for me since microcaps are your main interest.  I've not = dealt with=20 them much in the past.  I've been following a few microcaps = (<$80=20 million market cap) and I'm confused about the movements in the = bid/ask=20 prices.  Assume the spread is 7 X 7.15 with most trades, = small=20 lots, split evenly between those hitting the bid and those taking = the=20 ask.  However, the action is slow.  Then, the bid = suddenly drops=20 to 6.90, 6.85, 6.80, 6.75.  Several trades go off at 6.75 = over just a=20 few seconds, then the bid jumps back up to 7.00, at which point = the=20 trading becomes slow again.  The ask never changes.  In = some=20 cases, trades go off below the bid price. 
 
I can understand when someone = withdraws their=20 bid causing the bid to drop, but it seems strange that several = trades go=20 off at what appears to be far below the prevailing market=20 price.  No trades, bid drops for a few seconds, a = few quick=20 trades, then bid goes back up.  What causes this?  = It seems=20 to scripted to be accidental.   
 
Thanks,
Rob 
- ------=_NextPart_000_00C3_01C1CA69.52288A90-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 13 Mar 2002 08:47:18 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Microcap Question This is a multi-part message in MIME format. - ------=_NextPart_000_0082_01C1CA6B.AE894E30 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable You would have to have at least Level Two service, where you can see the = individual bids and asks by each market maker. And yes, it is possible to have a single MM, altho a Naz listed stock is = far more likely to have several. When you are "trading" against a MM, it is important to remember that = you are the competition. He is trading against his own acct, and wants = to sell above his inventory cost, or buy back below that cost. He is = there to make money, just like us. Tom Worley stkguru@netside.net AIM: TexWorley - ----- Original Message -----=20 From: Rob Miller=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 13, 2002 8:30 AM Subject: Re: [CANSLIM] Microcap Question Thanks Tom. On a thinly traded Nasdaq microcap stock, is it possible = that there is only one market maker? If so, I can see how the bid might = be manipulated. Is there any way to find this out? Rob - ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 12, 2002 9:33 PM Subject: Re: [CANSLIM] Microcap Question OK, I am home and will jump in here.I will try not to get too = technical or windy. First, keep in mind that NASDAQ and NYSE/AMEX work differently. The = first is a population of independent market makers, each with their own = bid and ask price. The latter is generally represented by a floor = trader, who represents the "book" (all bids and offers) on a particular = security. In both cases, what you "see" on quotes / live quotes is the best bid = (highest price) and best offer (lowest price). With a stock on = NYSE/AMEX, typically the same floor trader is responsible for both = prices. With Naz, the bid may be one firm, the ask another.=20 When you enter a Naz order, the firm holding your order can either = execute it themselves, or farm it out to another firm. But either way, = you should always get the best bid (highest) or ask (lowest). Exceptions = would occur when you have special conditions on your order, such as AON = (All Or None), or a limit price. So a buy order of 6K at a price of .99 = might not execute if the best offer was only good for a few hundred = shares, and the next best offer was at 1.01. On the other hand, the same = order to buy 6K shares at "market" might well have executed at 99 cents, = because a market order will take precedence over a limit order. At = worse, it might have executed a penny or so higher in most cases. Orders up to 1,000 shares can be automatically executed against = another firm using SOES (Small Order Execution System). These can happen = at lightening speed, even faster than that market maker is able to = adjust their quote. I have seen a MM offering 5K shares get hit by SOES = so fast that they lose 7 or 8K shares before they can raise their offer. = Often this may force them then to go in and bid higher for stock to = cover the difference. I have also often seen a MM that is not paying = attention, and has a bid or offer out there for 100 or several hundred = shares, and not realize that they have become the best price. So their = quote appears as the "best", but it's not real because it's so small in = size. A MM can drop his bid to try and force execution of some stop loss = orders, but he only knows about those stop loss orders on his own books, = he cannot see all Naz orders. Nor can he cause other MM to drop their = bid, and it still takes an execution, not a bid, to trigger a stop loss = order. Even if he gets sell or stop loss orders, he must still honor the = best market bid price (or give it to another MM) until that falls to his = new level. I haven't sat on a Trading Desk for nearly four years, so some things = may have changed, but I think a Broker Dealer still has 90 seconds to = report each execution to NASDAQ, and cause the resulting print. So in = that time interval, on a volatile stock, you could see the display of = the best bid and ask change several times, and appear to be out of whack = with the eventual print of a prior trade. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Rob Miller=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 12, 2002 1:24 PM Subject: Re: [CANSLIM] Microcap Question Ian, Thanks for answering my question. I wasn't aware that a market maker = could ignore the highest bid like that. If I understand you right, a = market maker can drop the bid to a point where a number of stop orders = will be executed, allowing him to accumulate shares, despite the = prevailing bid remaining at the higher price. So if I had the = prevailing bid, he can force sellers to take a lower price even though I = was willing to pay a higher price. That sounds unethical as well as = illegal. Rob =20 ----- Original Message -----=20 From: Ian=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 12, 2002 1:09 PM Subject: Re: [CANSLIM] Microcap Question Often times, you will see that activity in microcaps as the market = maker takes out stops set at $6.99 and buys some shares. You will = frequently see it right before a volume surge - they see some volume = bids coming in, and quickly drop the price in order to accumulate some = inventory by taking out stop-loss orders. Last week, I was trying to buy shares in a penny stock (my first in = years, but all the CANSLIM characteristics save the low price). The = bid-ask was 0.96 x 0.99. I but in an offer to buy another 6000 shares at = 0.99. I was watching a streamer and noticed that 40000 shares traded at = or below 0.99, so I assumed that my order was filled. At the end of the = day the price was 1.10, so I looked at my account and saw that I was NOT = filled! The moral is that you are subject to some nasty (unethical?) = trading practices as liquidity and price get low. The stock is at 1.40 = today, 4 trading days later :( Ian ----- Original Message -----=20 From: Rob Miller=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 12, 2002 7:20 AM Subject: [CANSLIM] Microcap Question Tom, I'm hoping you can answer this question for me since = microcaps are your main interest. I've not dealt with them much in the = past. I've been following a few microcaps (<$80 million market cap) and = I'm confused about the movements in the bid/ask prices. Assume the = spread is 7 X 7.15 with most trades, small lots, split evenly between = those hitting the bid and those taking the ask. However, the action is = slow. Then, the bid suddenly drops to 6.90, 6.85, 6.80, 6.75. Several = trades go off at 6.75 over just a few seconds, then the bid jumps back = up to 7.00, at which point the trading becomes slow again. The ask = never changes. In some cases, trades go off below the bid price. =20 I can understand when someone withdraws their bid causing the bid = to drop, but it seems strange that several trades go off at what appears = to be far below the prevailing market price. No trades, bid drops for a = few seconds, a few quick trades, then bid goes back up. What causes = this? It seems to scripted to be accidental. =20 Thanks, Rob=20 - ------=_NextPart_000_0082_01C1CA6B.AE894E30 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
You would have to have at least Level Two = service, where=20 you can see the individual bids and asks by each market = maker.
 
And yes, it is possible to have a single MM, = altho a Naz=20 listed stock is far more likely to have several.
 
When you are "trading" against a MM, it is = important to=20 remember that you are the competition. He is trading against his own = acct, and=20 wants to sell above his inventory cost, or buy back below that cost. He = is there=20 to make money, just like us.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----=20
From: Rob=20 Miller
To: canslim@lists.xmission.com=
Sent: Wednesday, March 13, 2002 8:30 AM
Subject: Re: [CANSLIM] Microcap Question

Thanks Tom.  On a thinly traded = Nasdaq=20 microcap stock, is it possible that there is only one market = maker? =20 If so, I can see how the bid might be manipulated.  Is there any = way to=20 find this out?
 
Rob
 
----- Original Message -----
From:=20 Tom = Worley=20
To: canslim@lists.xmission.com=
Sent: Tuesday, March 12, 2002 = 9:33=20 PM
Subject: Re: [CANSLIM] Microcap = Question

OK, I am home and will jump in here.I will try = not to=20 get too technical or windy.
 
First, keep in mind that NASDAQ and NYSE/AMEX = work=20 differently. The first is a population of independent market makers, = each with=20 their own bid and ask price. The latter is generally represented by a = floor=20 trader, who represents the "book" (all bids and offers) on a = particular=20 security.
 
In both cases, what you "see" on quotes / live = quotes is=20 the best bid (highest price) and best offer (lowest price). With a = stock on=20 NYSE/AMEX, typically the same floor trader is responsible for both = prices.=20 With Naz, the bid may be one firm, the ask another.
 
When you enter a Naz order, the firm holding = your order=20 can either execute it themselves, or farm it out to another firm. But = either=20 way, you should always get the best bid (highest) or ask = (lowest).=20 Exceptions would occur when you have special conditions on your order, = such as=20 AON (All Or None), or a limit price. So a buy order of 6K at a price = of .99=20 might not execute if the best offer was only good for a few hundred = shares,=20 and the next best offer was at 1.01. On the other hand, the same order = to buy=20 6K shares at "market" might well have executed at 99 cents, because a = market=20 order will take precedence over a limit order. At worse, it might have = executed a penny or so higher in most cases.
 
Orders up to 1,000 shares can be automatically = executed=20 against another firm using SOES (Small Order Execution System). These = can=20 happen at lightening speed, even faster than that market maker is able = to=20 adjust their quote. I have seen a MM offering 5K shares get hit by = SOES so=20 fast that they lose 7 or 8K shares before they can raise their offer. = Often=20 this may force them then to go in and bid higher for stock  to = cover the=20 difference. I have also often seen a MM that is not paying attention, = and has=20 a bid or offer out there for 100 or several hundred shares, and not = realize=20 that they have become the best price. So their quote appears as the = "best",=20 but it's not real because it's so small in size.
 
A MM can drop his bid to try and force = execution of some=20 stop loss orders, but he only knows about those stop loss orders on = his own=20 books, he cannot see all Naz orders. Nor can he cause other MM to drop = their=20 bid, and it still takes an execution, not a bid, to trigger a stop = loss order.=20 Even if he gets sell or stop loss orders, he must still honor the best = market=20 bid price (or give it to another MM) until that falls to his new=20 level.
 
I haven't sat on a Trading Desk for nearly = four years,=20 so some things may have changed, but I think a Broker Dealer still has = 90=20 seconds to report each execution to NASDAQ, and cause the resulting = print. So=20 in that time interval, on a volatile stock, you could see the display = of the=20 best bid and ask change several times, and appear to be out of whack = with the=20 eventual print of a prior trade.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----=20
From: Rob=20 Miller
Sent: Tuesday, March 12, 2002 1:24 PM
Subject: Re: [CANSLIM] Microcap Question

Ian,
 
Thanks for answering my = question.  I wasn't=20 aware that a market maker could ignore the highest bid like = that.  If I=20 understand you right, a market maker can drop the bid to a point where = a=20 number of stop orders will be executed, allowing him to accumulate = shares,=20 despite the prevailing bid remaining at the higher price.  = So if=20 I had the prevailing bid, he can force sellers to take a lower = price even=20 though I was willing to pay a higher price.  That sounds = unethical as=20 well as illegal.
 
Rob      =
 
----- Original Message -----
From:=20 Ian =
Sent: Tuesday, March 12, 2002 = 1:09=20 PM
Subject: Re: [CANSLIM] = Microcap=20 Question

Often times, you will see that activity in = microcaps as=20 the market maker takes out stops set at $6.99 and buys some shares. = You will=20 frequently see it right before a volume surge - they see some volume = bids=20 coming in, and quickly drop the price in order to accumulate some = inventory=20 by taking out stop-loss orders.
 
Last week, I was trying to buy shares in a penny = stock (my=20 first in years, but all the CANSLIM characteristics save the low = price). The=20 bid-ask was 0.96 x 0.99. I but in an offer to buy another 6000 = shares at=20 0.99. I was watching a streamer and noticed that 40000 shares traded = at or=20 below 0.99, so I assumed that my order was filled. At the end of the = day the=20 price was 1.10, so I looked at my account and saw that I was NOT = filled! The=20 moral is that you are subject to some nasty (unethical?) trading = practices=20 as liquidity and price get low. The stock is at 1.40 today, 4 = trading days=20 later :(
 
Ian
----- Original Message ----- =
From:=20 Rob Miller
To: canslim@lists.xmission.com= =20
Sent: Tuesday, March 12, = 2002 7:20=20 AM
Subject: [CANSLIM] Microcap = Question

Tom, I'm hoping you can answer = this question=20 for me since microcaps are your main interest.  I've not = dealt with=20 them much in the past.  I've been following a few microcaps = (<$80=20 million market cap) and I'm confused about the movements in the = bid/ask=20 prices.  Assume the spread is 7 X 7.15 with most trades, = small=20 lots, split evenly between those hitting the bid and those taking = the=20 ask.  However, the action is slow.  Then, the bid = suddenly drops=20 to 6.90, 6.85, 6.80, 6.75.  Several trades go off at 6.75 = over just a=20 few seconds, then the bid jumps back up to 7.00, at which point = the=20 trading becomes slow again.  The ask never changes.  In = some=20 cases, trades go off below the bid price. 
 
I can understand when someone = withdraws their=20 bid causing the bid to drop, but it seems strange that several = trades go=20 off at what appears to be far below the prevailing market=20 price.  No trades, bid drops for a few seconds, a = few quick=20 trades, then bid goes back up.  What causes this?  = It seems=20 to scripted to be accidental.   
 
Thanks,
Rob 
- ------=_NextPart_000_0082_01C1CA6B.AE894E30-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 13 Mar 2002 08:57:22 -0500 From: "Duke Miller" Subject: RE: [CANSLIM] Date: Tue, 12 Mar 2002 15:46:54 -0500 My problem is I'm excited about the biz. If for no other reason, a way to ride Home Depot, et al: they supply their high end cabinets. > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley > Sent: Tuesday, March 12, 2002 10:53 PM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] Date: Tue, 12 Mar 2002 15:46:54 -0500 > > > keeps appearing on my lists, but just can't excited about the biz > > Tom Worley > stkguru@netside.net > AIM: TexWorley > ----- Original Message ----- > From: "Duke Miller" > To: "Canslim@Lists. Xmission. Com" > Sent: Tuesday, March 12, 2002 3:47 PM > Subject: [CANSLIM] Date: Tue, 12 Mar 2002 15:46:54 -0500 > > > Is anybody watching CraftMade (CRFT). Made an feeble attempt to breakout > today, but... > > Duke > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > > > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #2199 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.