More BS on Wallstreet

Discussion in 'Trading' started by aphexcoil, Nov 1, 2002.

  1. Looking at the daily chart for THC, I notice monday a strong break from the standard deviation in price movement, strong downtrend and highly increased volume before news.

    Is the SEC going to investigate this when they "get time?"

    This is BS (I wasn't affected by THC, but I'd like to know who was selling Monday and Tuesday).
  2. Investigate that's funny. They only investigate when it makes the front page of a newspaper. If you look at most stocks, the volume almost always increases right before a major new story. Always makes me wonder who knows what.
  3. Just coincidence. :D
  4. dr_ma


    On 10/28 UBS downgraded that stock. Why don't you call them ask who sold on that day.
  5. Several ways to explain it:

    1. Someone knows something, illegally.
    2. For the majority of the stocks, it's just jockying for position by big institutions ahead of an expected news report.
    3. Remember, the buy side analyst at mutual fund shops, actually do real research, so they might have gotten some new piece of information, legally, that shows that the company is on track or off track on the quarter.
    4. Some sell side analyst could've gotten the same info, their are some legit sell side analysts, and while they're preparing the release of their report, the buy side analyst's mutual fund could be unloading or buying the stock. So it's all coincidental.
  6. And out of all these pre-news major moves, what percentage do you feel is #1? Just curious.
  7. If I had to guess, there's probaly a small #1 in almost all of them, but their shares wouldn't make a big difference. In some instances, maybe single digit percentage, a large institution gets wind. In these days, I don't think many of these institutions would be willing to trade on that illegal info with the SEC watching things so closely. I'd say in the past, during the bubble, the percentages were much higher.
  8. Forgive me if I seem inconsiderate to those on here who got slammed, but wouldn't a sudden significant deviation in violatility, two strong red candles and increasing volume be either a signal to short or a signal to not go long?

    I made the same mistake with IBM. I "thought" it would go down and lost hundreds on bad puts.
  9. It would, but in case you're wrong cut your losses when the stock crosses above those candles.

  10. I called miss Cleo the other morning and asked her where ES would be 5 minutes from now and she told me that she could definately predict that but needed to put me on hold for 5 minutes. When she got back on the phone, she predicted exactly where it went! That girl is good!
    #10     Nov 1, 2002