MM actions,>>>> please read!
this is a copy/paste, I have no clue who actually wrote it, but my thanks to whoever.....?
The market makers have a charter from the SEC.....to "Set an orderly market".....and they are allowed to short any stock to control the price action....even to naked short it....so ....when a stock goes up..... and goes up too high...the market maker will short the stock to bring the price down....to take the momentum out of it....this is why you see double and triple tops sometimes if there is a lot of MOMO......people will then start selling....then they *the marker makers* end up on the reg sho list for being short....and the only people on the reg sho list are the market makers....no one else....when the price comes back down (ususally they bring it back to the original break out point or the bottom of a pendant or channel) the market maker will absorb any sellers....in other words....he buys their shares....and he puts them in his inventory.....then when the market maker is ready (meaning he has enough cheaply bought shares) he will "Let it run" again at some point.......and I do mean "LET" it run ....the MM alone will determine that time....he will then buy back the shares he shorted (cover) and sell them.....along with all the other shares he took (stole) from sellers..... back out to the public......at the higher prices ....."this and the spread are how they make their money".....and ....this is how they control and nothing more).....don't think for one minute that what you buy or sell has anything to do with the price of any stock....then...when the market maker is "ready" meaning he has his "inventory" to sell again...."and" he has gotten rid of mostly all the other sellers above him...then he'll have no competition from other sellers.....this way.... he (the MM) becomes the main one selling "his" shares back out to the public....in other words he's clearing the path for himself by getting all the sellers out of the way.....it's called consolidation....but consolidation is not what most people think it is....it's only the market maker that's consolidating...he's just getting ready for the next run up.....he will bore you into selling....scare you into selling or frustrate you into selling by sometimes letting the price sit for a long time .....and then .....when he has the inventory he needs.... the stock will run up again ........until.... he sells all his shares out....then it starts all over again......he shorts it again.....this is how it really works folks......this is why stock prices go up and down......fundamentals have nothing to do with the stock price......the fundamentals are already "discounted"....meaning whatever is known about a company is already in the price..... MM's only use news for a catalyst .....and ....the market maker knows when the news is coming....he knows way before we do. Pumpers and bashers and conspiracy theory's have nothing to do with the price of any stock.....it's all....Accumulation and distribution...by the MM's.....they buy cheap shares (under the guise of weakness) and...the sell those shares (under the guise of strength)......that's the way it really works folks.......who did I learn this from.....
a former MM.
