Originally Posted by
sl62
Brandon...
Thanks for passing on...I don't doubt this kind of thing happens but not exlusively. We also know that 100 blocks et al, are used for outright price manipulation or trickery..and in the case of partial orders. But this kind of info can only assist a trader/investor when trying to decipher what may be going on in a given situation. One more thing to think of as a "maybe".
I look at MM's (and their powers) like this. First they are a sanctioned (MMs by NASD and Specialists by NYSE) group of firms that have been entrusted to "be the house" as some like to use the Vegas analogy. That's as far as I would go in the analogy cause IMHO Vegas and Wall Street are very different. But I will say they are the equivalent of the house because of their involvement in EVERY single trade that happens. And the fact that they have so many capabilities in the trading process (meaning decide who they will trade with and in what tranches, how many shares they buy and hold or sell etc..), to me that makes them the house..even though tehcnically there is not supposed to be a "house" in ostensible free-market, buyer to seller trading. But beyond them being the house, they are also responsible for controlling wealth accumulation. Let's face it. If you didn't have a group like MM's and Specialists there to create, yes, faux appearance, enticing opportunity that takes you out back, etc...you would easily have too many people making too much money in the market. We'd all have millions in gains and no losses..which would wreak havoc on not only our class system but also our overall economic balance (both of which our society is predicated upon and requires in its current form)...and which as most know is tenuous at best no matter what era we are in or to what degree we have problems. Maintaining a stable economy so that both inflation and deflation remain in the proper balance is a delicate operation to say the least. But my point about MM's is.. of course they are going to be given powers or allowed to develop powers that became accepted by the SEC for what they accomplish. I'm not saying I love having to fight a "system" but I understand one has to be in place otherwise you have chaos. Someone always has to be in charge, someone always has to have more power, and someone always has to be on the wrong side of the trade (as it were).