Smart Money Buying? 100,000 Shares...

[angelaktariel]

I have a quick question. I was just watching one my stocks and the tape indicated that someone just bought 100,000 shares. This was right at the end of the day, than I saw a few more big buys, like 39,900 shares and 18,700 shares.

Being that it is the end of the day, does this mean, tomorrow those buyers will short the stock?

I am holding this stock as a swing trade, so I was wondering what can I expect tomorrow morning with it.

Thanks,
Eva

[Soultrader]

Its possible that its institutional block orders placed at the close. Could be one party or a number of parties orders grouped together. Possible that a hedge fund took a long position for its portfolio.

[angelaktariel]

OK, so it doesn't necesseraly mean that they bought it up to short first thing in the morning....I thought perhaps that is why they bougth it. There was a huge stock buyback on this one today, according to the news, perhaps this was the last of it for the day.

Thanks for the quick answer.

Eva

[brownsfan019]

Eva - your guess is as good as anyone's as to who/what/where/why that large block was made. When you watch tomorrow your eyes will see that either 1) that big purchase was made to push it up at the open or 2) that big purchase was made to help push it down at the open. Regardless, you won't know what really caused it to happen.

That big purchase could simply have been the stock buyback as you indicated which might have little to no effect. Or, it could have a big effect.

[Soultrader]

Exactly like Brownsfan mentioned. You will need to see what happens tomorrow to fully understand the meaning of the block orders you saw. But keep in mind that the hint you spotted may have a significant meaning.

[angelaktariel]

Thank you both. You better believe I will be watching it like a hawk...hehehe. This stock is typically on my list anyway, and I was just scanning for news about it, that is how I found this little tip.

It is good learning for me about these block buys....they supposable bought back 2.5 billion stocks back today for this one.

Thanks,
Eva

[mister ed]

The argument often goes that if someone bought then someone sold ... that argument doesn't hold water with me, if the transactions are instead viewed within the context of price progression then we can apply some analysis. This might be an ideal opportunity to apply some Wyckoff techniques, or even just some VSA techniques ,and see what we can come up with in the way of probabilities.

On a purely simplistic view, if the purchases were part of a stock buy back then they should be bullish ... not necessarily for tomorrow of course.

If you want to share the code Eva we can have a look?

[angelaktariel]

Hey MisterEd, I would love to hear your thoughts.....I am beginning to learn about VSA, so would love to hear what you think.

The stock is STX, Seagate

[james_gsx]

It was me, sorry I didn't mean to cause this much trouble. All that money from the candlestick thread I had to put it somewhere

On a more serious note, my guess would lean towards what James originally said about a block order going through at the end. Often times a mutual fund or two will need to balance out their portfolio and build a position. So they tell the market maker they need to buy or sell x amount of shares, throughout the day the market maker will try to push those orders through and sometimes he/she is forced to do so at the end when the market is liquid enough.

[angelaktariel]

See how you are???? Hehehe.....

I see the point and it makes sense and I guess also the stock buyback makes sense, too. It was just interesting for me to see those huge chunks just showing up.

I am really intrigued by these market makers moving the markets, just too interesting.