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Robert T. Dombrowski wrote:
>
> Rich,
>
> Contrary to popular wisdom, I often daytrade thinly traded issues - say,
> 40,000 to 50,000 shares per day. What I consider to be a starnge
> phenomenon occurs occasionally. I'll sell well above my ask price.
> Here's an example:
>
> - It was on or about Sept 15th that I had an order in to sell AWK at 22
> 1/8. At or near the open, I sold at 22 1/2 - a spike clearly visible on a
> daily chart.
>
> - This occurred a few days before a run-up from 22 to 24 started.
>
> - During the run-up, vurtually ecah and every day, there was a "big trade"
> of about 15,000 shares at the end of the day (perhaps after-hours) that
> took the price upwards.
>
> 1.) Why did somebody buy above my ask? What mechanism allowed for this?
>
> 2.) What was going on during the run-up? (It stayed at 24 only a few days
> and then started to come down to more normal levels.)
>
> Been wondering, Bob.
The keys here are " at the open". Of course a stock can gap open
through your price and you can get filled better (or worse) than your
order. That isn't the same as :getting the edge" by selling the offer
and buying the bid.
Somebody bought above your ask because due to changes in the
fundamentals of the stock, they thought your asking price was too low
and they wanted the stock.
Eric
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