Crosses

I'm sure you're aware of them, and if you use Level II then you may have seen them.

The reason they exist is... business as usual, but the question is... What is business as usual?

I have asked this question of many people who should be able to give a knowledgeable answer... however, all I have gotten is guesses.

Considering that normal non-professional traders don't have the option, then we have to rightly assume it is commercial traders.

The purpose of trading short or long is to gain percentage = dollars.

My experience with crosses is that... soon after a cross... I have almost always seen selling pressure on the ask. If I had the power to cross... I would cross in the position and timing of the cross I have seen many crosses occur.

Many Level II watchers speculate a cross indicates accumulation by commercial traders, but I think that such a speculation is flawed. Commercial traders are privy to insider information, and better technically superior trading tools.

Logic dictates they have already loaded up and are only interested in selling supply into strength, and have the skill to see a bounce and load up for dumping into bounces, or are parcticing short selling, or naked short selling.

GLTA Lostoutwest
Kenuck SmallCap Trader

National Post

Grandich

StockCharts Public Chart List

CBCnews


Please read our Complete Disclosure