Last price higher than the Ask ???

[Sunsibon]

While watching the L2 for the last couple of months I saw an interesting thing that caught my attention - the last traded price and the bid were both higher than the ask. 5 minutes later the price of the stock tanked sharply.
A couple of days later I saw the same happening in another stock (see attached file) at the first hour of the trading day. 0.165 on the bid (5k), last traded price of 0.167, 0.164 on the ask (96K). That day the closing price was 0.178 but the next day was a a total disaster as the price gaped up to 0.18 at the open and closed at 0.116.

From your own experience, when the last price is higher than the ask is it pointing at shorts positions taking their place? Should I fasten my seat belt and wear my helmet next time I see it?

Gil

 

[dealer911]

While watching the L2 for the last couple of months I saw an interesting thing that caught my attention - the last traded price and the bid were both higher than the ask. 5 minutes later the price of the stock tanked sharply.
A couple of days later I saw the same happening in another stock (see attached file) at the first hour of the trading day. 0.165 on the bid (5k), last traded price of 0.167, 0.164 on the ask (96K). That day the closing price was 0.178 but the next day was a a total disaster as the price gaped up to 0.18 at the open and closed at 0.116.

From your own experience, when the last price is higher than the ask is it pointing at shorts positions taking their place? Should I fasten my seat belt and wear my helmet next time I see it?

Gil

I dont think you can read anything into this.. during the opening auction you will always see this kind of pricing.. if it's not during the auction period it could mean the price is in backwardation and is a technical issue.. you could monitor it for a while if you like but i dont think it will give you a clear signal.

 

[dealer911]

While watching the L2 for the last couple of months I saw an interesting thing that caught my attention - the last traded price and the bid were both higher than the ask. 5 minutes later the price of the stock tanked sharply.
A couple of days later I saw the same happening in another stock (see attached file) at the first hour of the trading day. 0.165 on the bid (5k), last traded price of 0.167, 0.164 on the ask (96K). That day the closing price was 0.178 but the next day was a a total disaster as the price gaped up to 0.18 at the open and closed at 0.116.

From your own experience, when the last price is higher than the ask is it pointing at shorts positions taking their place? Should I fasten my seat belt and wear my helmet next time I see it?

Gil

sorry i just had a closer look and it's clearly not the auction or backwardation.. this is a market maker stock right ?.. I still dont thinnk you can read too much into this..i personally hate dealing any market maker stocks.. really ineffecient way to execute orders.. frustrating as hell.. in the past i have seen a seller on the screen and i have been happy to pay higher levels but still got a nothing done when i tried to trade.

 

[foredog]

Unrelated in my opinion, the offer at .166 is in 5000 so to pay 0.167 for 20000 is not too bad and beats the average. After that i assume some big unrealted selling came in.

 

[Sunsibon]

Thank you very much for your inputs. It was probably just a coincidence seeing a huge drop in price after such a thing in both cases. I'll keep one eye open at this for a while just in case...

Thanks, Gil

 

[burlac]

The closing price is the last price for a tradable instrument at the time the market closes. For SETS, the closing trade price is the uncrossing trade price at which orders execute during an auction, or a Volume Weighted Average Price (VWAP). For SEAQ, SEATS and AIM securities the closing price is the best bid, offer and mid price calculated from market maker quotes at the end of the mandatory quote period.

 

[wackypete2]

At those share prices it's all to easy for a market maker or large trader to move/manipulate the market at least temporarily.

Peter