I never take any notice of what prices there are on offer for the selling and buying of shares before the 10.00 AM start. For, if you care to look at the figures/prices for the buy and sell after the close, the same thing will appear.
And the same applies for someone that wants to cap the sp. If for instance our shares are trading with buy bids at say 75 cents and someone lobs a sell bid of 100,000 shares at 78 or 79 cents, you can bet that that bid is there for the only purpose of capping our stock. For, if you try to take that bid out, your order would be refused/rejected. I have tried to do it myself in the past by trying to buy a large parcel of shares. And to do that, I would have had to clear a few lines. The moment my bid went in, it was rejected, and when I rang my Online Trading Company, I was told that I could not bid and make the stock move by more than 1 and a 1/2, and 2 and a 1/2 percent because it was considered/taken that I was manipulating the market. So for me to succeed I had to put two bids. One to take it to the next level allowed, and when that one went through, another one to the next level again. Little to say though, that when I lodged the next bid, that sale bid offer was gone and disappeared. I bet, that if a Broker was to do that, it would have been allowed, but not for us smaller ones.
But, that's me and the way I see it.
Cheers.
MPO Price at posting:
78.5¢ Sentiment: None Disclosure: Held
