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this was years ago when the sp traded 5 tick increments.
I buy a 1000 sp's at a named price like 450 but i give them a 30 tick
range around that price to fill it. So I'll take anything from 450 to
450.30
Next thing I know I get exactly half the order done at my specified
prices - but not the whole order.
Next the market dips a couple of points lower "real fast" on the chart
its the single ticks that look like a V - what was that I thought to
myself.
Just as soon as it dipped down it rebounded and the second half of my
order was filled.
>From there the market blasted off like a rocket.
So what was the V all about? Well if you knew that a big commercial
buyer was going to drive up prices. Why not take a little time and
position yourself so that you could buy lower and sell higher. That
is if you knew for sure that there was a buyer at a higher price that
would take delivery on what you were selling.
So in layman terms if I knew there was going to be a hurricane in
homestead Florida and rip off all the roofs maybe i would be smart
enough to buy up all the shingles in the outlying areas not effected
before the thing hit.
Or what if I could tell the hurricane to stop in the middle of its
destruction and wait for me while Ii buy up all he shingles. Then
after I get them all bought up - I tell it - it can continue.
Hurricane Brown
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