My observation of a stock

**shma** Sat Nov 18, 2006 7:05 pm

My observation of a stock
My observation of a stock

Although blast quit a stock on 6/6/6 and 6/9/6, I still hold it. The reason is that blast provides us good picks, but it is our responsibility to use that information as we want. Since I have used technique analysis for a long time, it is very natural for me to apply technique analysis on blast's picks when I deploy my cash.

My method implies that there is MM in the stock. If it is not true, the analysis is quite possible to fail.

By technique analysis, I found that the MM is still holding the stock. The features for detecting MM's holding depends on the specific stock. For that stock, the shares outstanding is small, which makes it quite possible to detect MM's operation. Although the price stands high for quite a long time, and the cumulated volume is also very high,there were two transactions very interesting. Either of them are big volume by only one transaction or two, and the price immediately moved high after that to avoid falling back. That implies the MM wants to collect shares, instead of selling them. Since the price is fair when judged by intrincic value, and the trend is up, it is quite possible that the trend will continue until it is distant away from the fair value. Besides, the insiders are holding their positions tightly. So I feel confident to continue holding the stock.

**littlebird** Mon Nov 20, 2006 9:48 pm

shma, could you recommend some books about market makers?