SNSN schreef op 23 juli 2013 14:15:
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The blocks’ objectives may be very different. They are usually used by market makers (mms) to “check on sellers/buyers” determining the market directions especially at crucial pints, resistance/support zones, etc. And mms are really buying/selling…. but usually in relatively small volumes to stabiles the prices…. (mms – do not have transaction costs). Second, those “blocks” are also used by profs to exercise the price pressure (to trigger and/or support the trend imposed) and/or to manipulate the existing trend ….. The goal is simple – you trigger the trend and get followers whose strategy is – “trend is your friend”. It does not matter if that trend has any underlying fundamentals or not. By doing so you do not waste too much money to “impose” the trend – retailers, day-traders and other small parties/followers will do the rest of job…. Yes, a “fake trend” may be used to get prices, for instance, down as lower as possible (based on technical levels) by “selling” as less as possible……- "large price moves at low volumes", and then you may build up positions smoothly at prescribed levels. There are also many other objectives….
The tactics depends upon the concrete market conditions, price/volume distributions, etc., etc. Today morning you saw one of those “scenarios” (the gap up - then “closing the gap" with ~90m p/h – compare with yesterday volume)