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With regard to the "uptick rule" for NYSE stocks...
I've often noticed, especially with smaller cap stocks with thinner
daily volumes, that the stock will advance an 1/8th or 1/4 of trading at
the ask, then pause for a few minutes... during which time, a 100 share
trade comes across on a down tick. I've lately wondered if this isn't a
savvy trader, "blocking" the ability for someone else to use the recent
uptick as an opportunity to sell a larger block short. I ordinarily
think that watching trading on this level doesn't reveal many clues
about what the market is doing (am I wrong?), but in this case, have to
believe that the strategy is somewhat more obvious.
Does anyone have any insight or understanding of this you could share?
Or even just confirm? Any sources or books you would recommend for
interpreting trading at this level?
Dick Crotinger
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