Mercator Minerals Ltd MLKKF

RE: RE: RE: RE: 12:27PM GMP just crossed !!!!!!!!!

[vliet]

Large crosses are not just dumb luck that it happens to be with the same brokerage.  The whole concept of crossing shares is that a seller with a large number of shares is wanting out or a significant buyer with a lot of cash wants in.  They work out an agreed upon price.  Then they trade on the market until they reach the agreed upon price and then the cross happens.  One brokerage does the cross because it is way easier to manage that way.  Crosses almost always signal the bottom when a stock has been falling.  The only times I've noticed that they don't is when the seller has not managed to sell all the stock they are intending to sell with the cross they've arranged.  Then occasionally they will just dump the remaining stock on the market temporarily pushing the stock price down.  In my experience this is very temporary.

In short, crosses after a stock has fallen for several days is typically a very good sign of a change in momentum towards the upside.  I watch for large crosses on smaller cap stocks as a sign that the stock will likely move up in the near future.  I have had good success trading companies I know little about just looking at the size of crosses.

Why should they go up?
Typically the seller sells down to the agreed upon selling price therefore artificially lowering the share price to allow for the cross.  After the shares are sold the downward pressure is gone. 

Also because the buyer of the cross just spent large $$$ buying in they will want to see their investment in the black and will often buy some shares on the open market to push the share price back up to a more reasonable valuation.

With ML.  Large crosses the last several days.  Eventually the seller will be done.  When that happens we move back up.  Just that simple.