The Other StuntBesides the rare "Vanishing Big Bid Stunt," we get to see its little cousin almost every day with Bioasis. Let's call it "The Trader's Setup." The stock wanders upward during the day, up a cent, maybe 2 or 3 cents, only to be swacked back down 10 minutes or 10 seconds before the close by a sale of a thousand shares into the bids.
Or, there's this other little trick. Say the price wanders up to 18¢ early in the day and then sits there without further trading. Somebody comes in with an offer below the current share price. Somebody else comes in with an even lower offer, down to, say, 16¢, which may have been yesterday's close. So our happy trader sees this situation, an offer that is lower than the share price. So what does he do? Instead of selling to drop the share price, he buys to do it. He buys the 16¢ offer, maybe 1000 shares of it, and sets the low closing price for the day.
However it's done, it truly is "The Trader's Setup." It's a setup for the next session's open. Traders don't want the stock to look strong at the close because an investor or two might come in the next morning and buy from the offer because they think the stock is looking strong and they should buy before the price goes higher. (I'm sure most of you know all this.)
Instead, if the stock is swacked backwards at the previous day's close, then the stock looks weaker and the trader might get lucky and buy cheaper stock if a shareholder decides to offload on the perceived weakness.
Of course, traders sit at their PCs all day and can play the game with dozens of stocks. They are also free to post positive or negative stuff on bullboards, to help their efforts to swing a stock a little.
It's clear from my text messages this morning that many of you saw the big bid of 25¢ for 100,000 shares. I know that it peaked your hopes, caused some excitement, if only for a few moments. It was a completely insensitive stunt for them to pull.
But one day, if this goes well, Lord-a-willin' and the creek don't rise, there will be a harvest...
Do you remember that moment in the Godfather where the Godfather tells Michael that whoever brings the message is the traitor? Remember that?
Here's today's message.
jdstox