stop guns

Discussion in 'Trading' started by thevicman, May 23, 2001.

  1. thevicman


    Are these two stocks, as traded today, examples of stop guns by the MM's? CBIS and RAZF. For the day both gapped higher, traded lower, but still closed substantially higher than the previous close, and closed on the low end of the range below the open. If these are examples, was the hidden agenda of the MM's to take out the buy stops, exterminating any buy pressure, to induce selling to take the stock down? If that be the case, might it be that they are gathering shares for a short-term rally against this day's action? Volume was heavy on both issues. What I am trying to do is understand the motives by MM's better in their gunning of stops. Thank you