With the lack of news, MM's and major investors ca
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(Total Views: 601)
Posted On: 12/14/2017 1:54:53 PM
With the lack of news, MM's and major investors can shake the trees and bring in the low priced fruit. Someone today clearly wanted to drop the price, and did so by selling a lot of shares, but probably bought back far more than was sold at dramatically lower prices. Stop loss orders often accelerate such trading as the MM's can see where they are and manipulate the market to take them out, even if you believe they're safely below where the market should trade.
I really doubt that many people who sold today wanted to, but they have because the MM's managed to get their shares. I suspect many will buy back in, but if the sale produced a loss for tax purposes, they should be cautious and wait 31 days if you intend to take the loss. Of course that carries the risk that the stock will be dramatically higher in 31 days, so it's a choice the seller must take. Personally I don't use stop losses and decide for myself when I want to sell a stock.
The are professional at playing these games, as individual investors I think we're best off watching them play the games and investing for long term growth. Of course if all investors had my attitude they couldn't play the games they do, but as long as people look for fast short term gains, the MM's will be able to play their games.
Gary
I really doubt that many people who sold today wanted to, but they have because the MM's managed to get their shares. I suspect many will buy back in, but if the sale produced a loss for tax purposes, they should be cautious and wait 31 days if you intend to take the loss. Of course that carries the risk that the stock will be dramatically higher in 31 days, so it's a choice the seller must take. Personally I don't use stop losses and decide for myself when I want to sell a stock.
The are professional at playing these games, as individual investors I think we're best off watching them play the games and investing for long term growth. Of course if all investors had my attitude they couldn't play the games they do, but as long as people look for fast short term gains, the MM's will be able to play their games.
Gary
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