STUPID? 500,000 share market on a 1mill a day stock?

Discussion in 'Trading' started by si3b3n, Jan 23, 2006.

  1. si3b3n


    Hey guys,

    I dont know how many of you guys lost money trading Aguila today... but take a look at the chart! Someone marketed 500,000 shares on a stock that does little more then a million on a normal day.
    So how did he make his money? Give me suggestions. It looks like he loaded up on about 250,000 shares long and then he marketed 500,000 and ate through my 15,000 in a heartbeat...
    It also looks like he bought back the 250,000 he was short somewhere about 10 cents below where he sold it. Booyeah Jimmi. Is that it?
    Of course, he would have only had a couple of minutes to buy the shares back from all the guys who were getting kicked out because of the stop loss. And of course, the stock bounced right back up.... about 20 minutes later.

    So, If anyone can explain to me how he did this and made money, I would greatly appreciate it.

  2. how do you know it was the same person?
  3. si3b3n


    I dont, I am asking for the suggestions cause this doesnt happen every day. Actually on this stock it hardly ever happens. It looks like 2 medium shorts and one huge 420,000 share short. Thats what it looked like when it was eating through everything too as well as on the graph. Check it out.
  4. alanm


    Looking at the tape, things were crusing along quietly until the NYSE offered 300K @ 3.65 at 11:25:32, and then gapped his bid down to 2.50 3 seconds later. What's surprising is that the ECNs' bids didn't disappear - thousands of shares trade 60-64. Also strange is the NYSE Direct+ print 1000@64 at 11:25:41, after he already dropped his bid. Shouldn't have been late because those happen automatically.

    ECNs scramble around a while, as NYSE gradually lowers his size and downticks to 240K at 64. He then prints:

    362500 @ 3.45 at 11:27:28
    13900 @ 3.45 at 11:27:30

    updates his quote to 2.50x3.50, and starts printing 3.50 as people cover their shorts, and he unloads whatever part of the trade he took (was that the 13900 maybe?)

    I don't see any way to get to the story of the original poster from this information. It could just be that someone had 300K-375K shares to sell. Perhaps you'll see a form 4 filing from an insider.