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Re: Understanding market behavior

richard.hall...@gmail.com

Volume is very low with ATS so supply/demand doesn't apply well.  With
volume this low it is important to place a price limit on your trades
or you could get surprised.  Traders have limited buys at very low
prices and limited sells at very high ones.  Late today (12/31) I put
in a sell at $2.10 and had to wait a while before someone took me up
on it.  A few minutes later it traded at $2.40.  Someone paid too
much, since the last trade of the day was a more reasonable $2.15.
Using the Google graph for 1 day it is instructive to see prices that
match the volume through the day.  You then realize that the
candlestick charts give a misleading picture when stray trades occur.
Another thing to consider with ATS is that it is traded in HK when the
US market is closed.  Price changes in HK or US drive prices at the
other place.  To see the price differences look at
http://chinabizfocus.com/modules/InvestChina/stockideas.php?sel=tradi...
As you say, little is know about this company on this side.  Perhaps
the Chinese know more.  And they can signal that through their trading.