Take physic, pomp

Shenanigans at Minera Andes (MAI.to)

MAI.to five day chart, 1 minute bars: Not easy to
read, but has all those 500 share trades showing

One of the nice things about running this blog is that over its lifetime it has attracted some pretty sharp market observers as readers that are often kind enough to share their opinions with your scribe. Yesterday I received a mail from reader ‘AP’, who has noticed the same thing as your humble correspondent these last couple of days about trading in Minera Andes (MAI.to). Here are extracts from his mail:

Hello Otto,

At the end of trading, for the last couple of days, there was always someone dumping a big number of shares on the market, this pattern looks somehow suspicious to me. .

Do you think there could be some importance to those trades at the end of the trading day or is it just some kind of coincidence in your eyes? Thanks in advance for your opinion.

Best regards,

Here’s my reply to ‘AP’:

Yep I’d noticed too. I think you’re right and someone wants a lid kept on MAI.to. the suppression is done by multiple 500 share blocks, too (the minimum number required for a price change to be registered.

Note volumes are high recently (1.5m in two days). I think it adds up to somebody wanting in for a nice, big chunk at these prices. Not a bad pattern and one not to worry about.

And sure enough, this morning we’re seeing the same sort of action. The fact that the multiple trades are going through in blocks of 500 shares is also significant, as any number less than 500 is classed as a small lots trade by the TSX and doesn’t register any price change in the stock. Also, all these 500 share lots are sold by our old friend “anon” and bought by house 7, TD Sec.

Funny coincidence that, innit?

The bottom line is that MAI.to is being sat on here, folks. That means things look good for a short term trade, because once the bigger player has decided the sitting-upon chapter is over, the stock will pop back up, just like the metaphorical cork held under water.

DYODD, dude.

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