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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Monday Market

Monday Market

posted on Oct 12, 2009 01:09PM

On NYSE - KRY sp still hanging close to two-bits. Technicals are ugly on 15min, 60min and Daily so no need to go into further. Volume currently at about 230k. Another 450k'ish bid at 0.2400 (at least that is what they want seen), so likely will stay above that. Looks like there is significant interest, but the new speculators are being patient.

Dow is still up after a slight pull-back, and has made a new high for the year. As noted before, the follow up is the next low, whether higher or lower than the last low. Holiday for Bonds and our friends to the north. Double whammy week with Options expiration and Q3 reporting starting. About mid-way through the trading day and overall Market is mixed. Might want to keep an eye on the housing market. There is a whole lotta Alt-A and ARM's that will be recasting beginning later this month, and could be a bummer for housing. Not to mention housing's "Shadow" inventory (held by the banks).

Gold got a big boost at open of London and has not looked back, for a strong start to the week. Showing a little bit of profit taking at this time, but looks fairly good at this point. Currently $1055'ish.

Follow up on stock manipulation: It is true that both MM or Specialist (AKA Designated Market Maker) are similar in that they both provide liquidity. However, there are significant differences in how each provides that liquidity. In the MM system, there are numerous MM's for each stock - and every trade posted goes through an MM. MM's are required to maintain continuous bid and ask quotes that they must honor. This is not what happens in NYSE/AMEX. The NYSE system is auction based. There is one Specialist for each stock. When a bid-ask trade is posted, it is matched to another trader's ask-bid to be executed. The system is intended as an auction and that you will trade directly with another trader, and not the Specialist. It is estimated that the Specialist only steps in on one in ten to fifteen trades to provide liquidity. Specialists do hold some stock inventory to provide liquidity and are required to execute all other trades at a sp before their own. Granted, manipulation is still possible - although am not convinced it would likely be by the Specialist on an NYSE/AMEX stock.

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Oct 12, 2009 04:39PM
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