Fannie Mae-No Politics (FNMA)

[InDepthAnalysis]

ARCA and YOU!

I've been watching ARCA on FNMA for a very long time now, literally every minute of the day.
Despite what some people may think, ARCA is an ECN (AND)automatic trader.
Sometimes you will see his bid/ask share count fluctuate wildly every half second.
He never buys or sells against himself either, another indicator that it is just one entity.
The program works by placing small trailing orders on both the bid and the ask.
I've watched it do the following actions many times, and this is not a guess. It is a fact.
When there is buying pressure, the ARCA ask orders are being taken out.
When this happens, the ARCA bot begins buying until a certain amount of time passes where one of the small ask orders DOESN'T get filled.
Then it stops buying and starts selling, this spurs further selling and his small bid orders get taken out.
He continues to sell until a certain amount of time has passed since his small bid orders get filled.
Then he rinses and repeats the whole cycle again. This should tell you two things.
One, if the PPS drops or rises, then it was because of more selling or buying pressure, and NOT manipulation by ARCA.
Two, ARCA is more of an emotional trigger, he makes money off of people following him due to fear/greed.