What's an MM?
Printable View
What's an MM?
2 larger blocks finally moved up from .15 cents. Good sign. Id raise the chance of .15 holding to around 90% now. It would take some heafty manipulation at this point now. Looks to be gathering support for over .15 cents now. .1525 resistance to clear.
Quote:
Originally Posted by Danzo
Yeah i was wondering what that was as well.
Theye tore it right back down as theye always do.
Well if you can watch level 2 quotes, watch how they work in unison. Like a sing song dance. Back and forth at times, moving bids and ask in and out. Coordinated effort to control and manipulate how a stock is traded. The MM's are Market Makers(NITE, ISEG,Cinn, ARCA) etc... They take sell and buy orders and make them happen. They also are allowed to NAKED SHORT ANY STOCK THEY WANT. I think NITE and a bunch of others including ETRADE just got busted for doing this maliciously, and not in there customers best interests. Brandon wrote about this angle lately, go read his articles. As long as they do it out of necessity, and cover in a reasonable amount of time(technically so are option houses too allowed this practise). They usually shouldnt be naked short selling, but they will take shares they own, and use them to control the price, by buying and selling to each other, or even themselves.
There, was just another intraday take down. 100 shares used. BS, when they think they are having a hard time with an upsurge they will do a "take down". A few ways they can do this. Completely against the rules. No reason for it. Pure BS.
Market manipulator :eek:Quote:
Originally Posted by Danzo
Just kidding it's Market Maker the people who are supposed to match the bids and asks but they really do what suits them (they also buy and sell for themselves and don't have to pay commissions so they manipulate for their own profit )
12:41:44 $ .1506 500
12:41:40 $ .1509 100
12:41:40 $ .1509 100
12:41:40 $ .1509 100
12:41:40 $ .1509 196
As in any business, you have to think of the MM's as any other company. They have big customers and small customers. What happens to the price of a stock when a MM receives a ton of large block buy orders? Knowing this will make the stock go up, robbing the big money of gains, they will hide the orders,and fill them by trying to take out stop losses, or manipulating the stock sideways or down until they are all filled, because they "pay the bills". So expect the stock to drop if big money has interest. If big money needs to sell, you can bet it will try to make the price go up while they are selling, etc...
If you or I are buying and selling, its a retail order, and gets treated as the dumping ground for the big money buy or sell. Your order is not significant,therefore will not control the price. Now if a ton of retails buy or sell, yes, of course this will affect the price, but only temporarily if this is still against the grain of teh big buy or sells. If the pressure of retailers is maintained, they might move up or down significantly to find a "line in the sand" price to try to hold. This could be up or down, depending on the ultimate direction the MM's are tying to make a stock go. If they have neutral buys and sells, usually the stock wont move much, and its easy to fill orders. This rarely happens, as big money is usually right by "might" so to speak.
The 20-50% price movements on big volume days are the retailers and the big money on the same page. Those are great days to be "riding the wave" so to speak. A bull or bear trap are used to sucker in huge retail money, to eventually bury these buys or shorts "underwater" and force them to sell at a lose. Guess who gains? LOL
As always, thank you for your insight.Quote:
Originally Posted by relmor2003
On 6 Feb it required 200k more shares buying to move price up .01 compared to number of shares selling required to move price down .01
http://www.buyandhold.com/StockMgr?request=display.content&symbol=SIRI&Conte ntURL=%2Fcustom%2Fbuyandhold-com%2Fhtml-story.asp&guid={09E9B1D6-1E99-48FC-9F0C-3ED138B82085}&symb=SIRI
(report from 9 Feb)