PUGS refer to this - VNDM Moving gives the tick
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Posted On: 04/18/2017 9:18:57 AM
PUGS
refer to this - VNDM Moving gives the ticker more room to run.. If they stay at .10 today, or move off completely. I think its the end of the dilution/conversion, whatever is going on.
Anything catch your eye when you look at this?
The first thing I notice is market maker “VNDM” on the ask at .016. So, why is this significant? I’ve been watching this stock for awhile, and market makers such as VNDM and VFIN will often sell massive amounts of shares at a certain price level (dilution), hindering the stock from going up.
If you just looked at this Level 2 screen from a supply and demand perspective, things would look great. It appears that there is much more demand then there is supply, meaning the stock could run soon. Analyzing the market makers allows you to understand that there is probably a lot of supply around .016, making it difficult for the stock to run.
The stock chart confirms this. Below is a 5-minute intraday chart of MYEC’s trading action. Notice how the stock cannot break above .016 towards the end of the day. Every time it gets close, it is pushed back down as traders realize that it will be hard to break that price level.
Now, at the end of the day, VNDM moved his ask price up to .019.
To me, this means the stock has room to run up to that level, however, by this point it was too late. Many traders already got their shares for cheaper and have less motivation to push the price up. I bring this up because it’s another important point about the effects market makers have. Traders want to enter a stock when they think it has the potential to move up. When a market maker holds the price down through dilution, they make the stock less appealing. Additionally, a lot of buyers end up getting their orders filled at cheaper prices, meaning they have less motivation to buy shares at higher prices on the ask. Knowing that a stock has been diluted is a great way to understand the psychology of the traders involved.
refer to this - VNDM Moving gives the ticker more room to run.. If they stay at .10 today, or move off completely. I think its the end of the dilution/conversion, whatever is going on.
Anything catch your eye when you look at this?
The first thing I notice is market maker “VNDM” on the ask at .016. So, why is this significant? I’ve been watching this stock for awhile, and market makers such as VNDM and VFIN will often sell massive amounts of shares at a certain price level (dilution), hindering the stock from going up.
If you just looked at this Level 2 screen from a supply and demand perspective, things would look great. It appears that there is much more demand then there is supply, meaning the stock could run soon. Analyzing the market makers allows you to understand that there is probably a lot of supply around .016, making it difficult for the stock to run.
The stock chart confirms this. Below is a 5-minute intraday chart of MYEC’s trading action. Notice how the stock cannot break above .016 towards the end of the day. Every time it gets close, it is pushed back down as traders realize that it will be hard to break that price level.
Now, at the end of the day, VNDM moved his ask price up to .019.
To me, this means the stock has room to run up to that level, however, by this point it was too late. Many traders already got their shares for cheaper and have less motivation to push the price up. I bring this up because it’s another important point about the effects market makers have. Traders want to enter a stock when they think it has the potential to move up. When a market maker holds the price down through dilution, they make the stock less appealing. Additionally, a lot of buyers end up getting their orders filled at cheaper prices, meaning they have less motivation to buy shares at higher prices on the ask. Knowing that a stock has been diluted is a great way to understand the psychology of the traders involved.
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