Is this practice not illegal?

Discussion in 'Trading' started by Maverick2608, Apr 30, 2024.

  1. Pushing a stock aggressively up during the relatively illiquid last minutes/seconds of the premarket in order to sell as part of the opening auction for instance for a stock that has reported earnings and where the auction volume can absorb the liquidity with a much smaller impact?

    I don't know whether that is what happened to HLIT this morning. But the violent price increase during the last seconds of the premarket trading seems strange.
     
    Last edited: Apr 30, 2024
  2. SunTrader

    SunTrader

    Where a stonk closes pre-market doesn't necessarily mean it will open there or there about.
    Price goes to open posted orders.

    Anyway it looks like it ran up pre-market, then gapped higher on RTH open. Nothing unusual that I see.
     
    murray t turtle likes this.
  3. %%
    NOT sure I would call a $10 stock going up \or down LOL 10% + real strange .
    But small caps , tech sector ,even more moves like that , likely.:caution:
    Joshua Lukeman did note a 1% move in a $100 stock is more common than 10% move on $10 stock. [risk control context, LOL]:D:D
     
  4. tomkat22

    tomkat22

    HLIT is easy to borrow so the shorts probably piled in as soon as they could. A lot of traders cant or wont trade in the pre-market but as soon as that opening bell rings it's Katy bar the Door. Or could be just market maker shenanigans.
     
    murray t turtle likes this.
  5. schizo

    schizo

    Where I come from, that's actually called an edge. :sneaky: If you have the means to move the market at will, why not?
     
  6. It’s very legal! BB, Amex Specialists, Nasdaq MMs and NYSE Specialists gap up/down stocks up as you say. Just my experience watching for decades. Knowing this now, how will you use it to your advantage? There’s a reason why.
     
  7. maxinger

    maxinger

    How much $$$ did you lose?

    Most likely, you pressed the BUY and SELL button in the wrong sequence.
    If you changed your pressing sequence, you would have made tons of $$$$.


    Always trade with the trend and with momentum direction.
    and trade during Opening hours.

    Don't trade when the trend is not well-defined.
    Don't trade penny stocks.
     
    Darc likes this.
  8. Darc

    Darc

    My short foray into trading individual Stocks came to an end one fateful low volume Day when I noticed all sorts of behavior which seemed Market manipulation.

    Low volume means danger. Tom Williams made a career out of it, either engaged in it or writing about it.
     
  9. -3.234 however ended the day up 22.565, so I will live.
     
  10. maxinger

    maxinger


    You have to understand how the pre-market matching works.
    You need to know what happens *
    -15 minutes
    - 3 minutes
    - 60 seconds
    before opening.

    * Exchange dependent

    Some traders specialized in it.
    If that is not your intention, you should focus on RTH.
     
    #10     May 1, 2024