Subtle changes in ABR marketbook

Ever wonder why traders know when a deal is about to move one way or another. To a non industry person, it amazes them how often traders are able to swami up a correct prediction for the near term prospects of a deal.

Its all about subtle change in the markets and interpreting them. In the case of Ashburton, the signs are showing up. On Friday last a bid for over 650000 still is left to be filled. This was followed by a new buyer at 6.5 and 7. A trader notices that old opens are getting fills on the sell side and there is no rush of new sellers. Come Monday, good new buyers are bidding it up and the deal continues to trade on the offering, rather than the bid.This adds up to one thing. Expect the movement trend to continue.

Its not rocket science, but after being involved in penny markets for over 33 years, I have learned a few things!!!!

royrogers

www.marketcents.com