AMX 1.52% 32.5¢ aerometrex limited

volume, page-45

  1. 1,890 Posts.
    "If they are buying how is that driving the shareprice down.
    "

    I'll answer that first with a question:-

    How do you take a 10%+ stake in a relatively illiquid stock ,in the shortest amount of time possible ??

    Answer: you manufacture negative sentiment in the stock using algorithmic trading programs that are specifically designed to take advantage of weak human emotions.

    http://www.bellmontsecurities.com.au/2011/02/09/the-changed-nature-of-the-market-and-price-manipulation-on-the-asx/

    You cannot underestimate the effectiveness of algorithmic trading in order to achieve a desired outcome.

    The reason taurus have been able to buy so much , is by the algorithmic trading imo , which exasperates price movements in any desired direction , in amx's case, consequently manufacturing negative sentiment in the stock and creating massive selling pressure from retail investors (note: have you seen any major insto's selling down their positions ??, no , because they know this game better than anyone)

    Many here have noted the algo trading at work and have posted as such. They have noted the negative bias in the direction also. Given the relatively low liquidity in the stock , price movements are even easier to manipulate.

    And as i said , on the flipside - WHEN they decide they have had their fill, they can employ the same methods to generate positive sentiment in the stock , and subsequent buying pressure as retails investors scramble to buy back their positions.

    Might i just add - i'm not totally opposed to the practice , as I'm AWARE of its intention, i'm AWARE of the opportunity and i'm AWARE of the final outcome, which is this ---> $$$$$

    BTW - well done for not selling out of your position - i would suggest that most retail investors have by now.
 
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