Posted by Richard on September 15, 1999 at 17:56:30:
In Reply to: Richard, posted by Mary on September 14, 1999 at 18:03:54:
Currently it is not bringing up a chart for me.
http://finance.yahoo.com/q?s=SGTN.OB&d;=5d
The stats for the day show that the open was
12.5 cents (funny how there is no cents sign on
my keyboard-I guess the futurist who designed it
must of thought cents wouldn't be useful in the
next millenium-must not have predicted soligen
either :)) and the close was at $.25. There was
also a volumne of 2000 shares (according to yahoo).
Usually, the intraday chart would show one or two
spikes on a low volumne day like this for good 'ol
sgt.
If this data is accurate, this is what I would
expect to have happened for what I am guessing to
be two trades:
Hypothetical Scenerio A
Market Order:
Somebody says,"There is a concrete wall up ahead,
so I will jump out of the non-judgmentally percieved
to be poorly driven car."
Our soon to be smashed into a concrete wall friend
puts a sell MARKET order. Hmmm the MM says, nobody
else is buying right now. . . The MM specialist wants
to keep your brokers business (because if he doesn't
do the trade the broker will go to the next MM)so,
he does some magic math and dips into his well of
stock that he maintains for each stock they own.
I'll give him $.125 for his 1000 shares, the MM
specialist saysand adds the 1000 shares to the well
(or he could have matched a limit buy [if there
was one]of $.125 with this purchase and not
dipped into the well at all).
Hypothetical Scenerio B
Limit Order:
Somebody else says, "Whoaaa! What a cool tech!
I can't believe this stock is at $.25!!! I better
get on this thing before it rockets to the moon!
BUT, I've got a budget and I can ONLY buy 1000 shares
if the price is below $.30."
Our enthusiastic, well intentioned friend puts in
a LIMIT order of $.30, coincidently someone else
puts their STOP order in at $.25 at the same time.
This time our MM specialist doesn't have to do any
magic math (in fact this transaction probably is
matched up on the computer). He has a buyer and
a seller at the same time. He sells the sellers
shares at the best possible price and he buys the
buyers shares at the best possible price(minus
a little something for the left pocket across the
bid/ask.
I couldn't find an equivalent low volume stock to
show how I pick out the individual trades via the
intraday yahoo graph. Another way is to get Level II
trade info.
:
: You seem to be pretty good at this; explain to me how SGTN went from 3/8 to 1/4 today without any volume...