The specialists gapped it up on low volume during that time frame then waited for the suckers to buy into the false rally. After they squezzed out what they could they dropped the price quickly, again on low volume. I'm sure most of you know this already but for those that don't.... when a stock gaps up on low volume (bearish signal); if stock gaps down on low volume (bullish); gaps up on high volume (bullish); gaps down on high volume (bearish).
It is illegal but is a common practice that is not regulated. They will send buy orders in 100K blocks, the specialists see these orders then run the stock in their favor while only execution on a small amount of the order, hence the low volume during the gap up and down. That rule is in the 3,4,24,7,55,65 exam books and then some.
why did you short again IBM 8 minutes after you covered your previous IBM short? what changed your mind? seanote are you talking about MSFT or IBM?? also if you "expecting that gap to fill" then why did you short IBM again at that price?
Your right about the typo on MSFT... I meant IBM. I shorted IBM again since it moved up about .20 from the price I covered at plus I intended on my first short to hold overnight but when IBM gapped down that quick I wanted to lock in profits with the hope to go short again after the gap filled which sort of worked out for me. We'll see on Monday.
Seanote, I am sure you are right about where this rule is found....just been so long since I did the others. Only the 55 recent for me. Anyway, you are also right about the specialists, which is why I have always contended that as all thoroughbred race horsed are decended from Man 'O War, all specialists are decendants of Ghengis Kahn. Hitler was a specialist. Charles Manson too PS: What is the 65 exam? I must really be getting old...this stuff passing me by. I took all the others with pencil and paper...except for the 3...that was in 87 or so when they had computers...and of course the 55 just 'cause it's new.
I will start a new trading journal thread on Monday: "Trading Journal - July" I will trade Mon. - Wed. next week. Friday is a half day and I'll be on vacation.
The 65 combines the 63 (State Exam) and 66 (Investment Advisor) so brokers/advisors can receive wrap fees for managed money.