futurenet

FutureNet:

As I understand it as ARQ is a member of several indicies, in this case the sales/buys of shares are in part designed to rebalance portfolios based upon some formula....

If an entity goes long or short some futures contract they can offset the risk by buying or selling the "correct" number of shares to balance the new postion.

With ARQ there may also be an attempt to move the price up or down based on the automated sales.

CFD's may also come into play as well.....

When the bid/ask queue is thin these sales can move the share price up or down by a penny or more.

If you have lots of bucks and the sentiment towards a company is neutral, you can take advanatge of these moves to scalp a few cents.

HOWEVER, with the current situation in ARQ, I feel that this is no longer possible with ARQ as there is huge negative sentiment towards the company and its shares as shown by the large and increasing short position in the stock.

Years ago there was the same type of trading in Petsec and there the moves were huge - sometimes more than 2 or 3 cents and often hitting a basically empty buy queue which hammered the shares.

Many people complained about the practice and I was one of them. The reply from ASX was basically, a "SO WHAT - NOTHING ILLEGAL" type repsonce.

So I guess the moral is, if you got the bucks you can do anything you want!