Those pernicious gremlins that watch me trade. I’m sure you know them, too.
If I want to buy a stock, they flash an attractive price on my screen, only to snatch it away before I can enter the buy order. If I add a few pennies to my bid, they dangle the stock just a bit higher for the next ten minutes, only filling my order if I really, really won’t chase it.
Once my order is filled, of course, the stock drops a few cents every few minutes until I get disgusted, at which point it sits there like a slug for half the afternoon, a respectable amount lower than I paid.
Finally, just to finish my day, the gremlins often move the price to exactly what I paid for it, so I can see my end of day results being equal to a loss of my commissions.
I’m sure they do it to you, too.
Disclosure: Bought NLY, ANH and CMO today
PS The reverse is true when I want to sell, as proved when I unloaded a third of my DEPO, which is enjoying a strong day along with all the other developmental drug stocks I own, probably because one member of the chorus was picked out to headline tonight’s show (Dendreon). Hope springs eternal, but the gremlins will make it less satisfying even when you sell at a profit or buy at a very attractive price.