RE: Buys and sells15 Sep 2018 08:41
Below the mid-price is a sell and above is a buy. However, when the spread is large, the gap between the Bid (sell price) and Ask (buy price), the true share price might be above or below the mid-price. This allows the Market Makers, MM's, to distort the sells or buys and hence the resulting share price. The MM's are like wholesalers who supply the Brokers, retailers, thus creating a market. When a trade takes place, a sell might be bought by the brokers, the MM's or be matched with a buyer. Similarly, a buy might be bought by the broker, the MM's or matched with a seller. Very illiquid stocks are more likely to be matched, as the MM's will not want to hold many, or any at all. Brokers will usually quote below the EMS, but for larger trades will contact the MM's. When the MM's are changing the price and at times of volatility, even low trade numbers can result in NT, (No Trade). A price above the buy price, or below the sell price has to be entered manually, and the broker contacts the MM's with the request. The outcome is emailed usually within 15 minutes.
Why whether the 64.5m trade is a buy or sell is important, as it will have a bearing on Monday's share price. IMHO it is a buy that has been filled over the last two weeks, as the quoted price by the MM's must have been too generous. As the price rose more than they anticipated, the MM's would be selling for less than they bought, so they take the price down until the order is filled. If I am right about this, then any buying pressure will push the price back up. If I am wrong, then the sells will continue and the price will continue to drop. I hope that explains the situation. If it was easy to work out which were buys and sells and the direction of the share price we would all be millionaires.
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