It isn't the newspaper people that make a stock price go up or down.
It is not an e-journalist.
It isn't the Cramers of the world either.
And it surely is not me or any one else here who posts.
BIG MONEY MAKES THE MARKET MOVE ON RIMM.
If you were a mutual fund holder with 25 million shares of RIMM and you decided to dump them , would you or wouldn't you contact one of your colleagues who works for another fund, and let him know over lunch that you want to shift out of RIMM.
Or if you wanted to accumulate 20 million more shares, you would want to buy large chunks at a time, yes or no? Would you be able to buy what you need from Techfan49 or anyone else here on the board?
Hell no you wouldn't.
You would talk to people who hold large chuncks in their portfolios right?
You would speak to RBC or CIBC Capital Markets or Fairfax or any other giant and over lunch
you would hint to them that you are in the market for .....x-million shares..
Very quickly you will find your shares or sell your shares because we are talking money, ladies and gentlemen, We are talking trades worth hundreds of millions going back and forth the same way I would pour your single malt medecine shots.
Then on that day when your shares are bought by another fund, it just so happens that the market moves to the price or close to the price of the bid/ask of the two three four or five giants who make the market of the RIMM share or anyother share because they trade the shares of the world, the same way you and I were trading baseball collector cards when we were kids.
Only this time, it's hundreds of millions of dollars, and on a quiet day maybe it's only one or two million shares.
All the noise that a long or short can create here does nothing for the share price direction.
Reading posts that so and so is gonna short it to 2 dollars will result in nada.
It's always the market that decides where a stock will go, because bottom line they are creating
most of the volume that you and I witness.
What can you do as a trader?
Trade on the technicals instead of the noise.
It really is getting very noisy here.
Noisy shorts and noisy longs responding to the shorts with even more noise and so on.
I need to wear noise blocking head phones.
Technical indicators are the result of the decisions made by the market; and when I say market, I mean
BIG MONEY...not your piggy bank.
If you google search technical stock trading, or candlestick charts, you will surely come across more than a few websites where technical trading is taught.
Once you learn it, then you won't care what side of the fence you trade from because a trade is a trade.
The stock is just the vehicle.
Technically speaking, todays closing price in the US suggests that there was more buying support than Canada.
Just as the price gapped down at the starting bell today, it could gap up yesterday because technically the closing price over in the united states, was higher than the gapped down starting price..
Just look at the chart but most importantly look at the final block of shares that went through seconds before the final bell over 267,000 shares .http://www.nasdaq.com/symbol/rimm/interactive-chart
Technically it means that a block was purchased at the close.
Techniclly it's saying that someone loaded the truck last minute.
See the spike?