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Re: Livintilidie post# 142731

Tuesday, 04/04/2006 3:23:21 PM

Tuesday, April 04, 2006 3:23:21 PM

Post# of 286509
I agree .... That is called "trending" and the fluctuations are held within this trend with or without "flippers". This is liquidity. Market Makers are paid to "Make the Market" this way.

There is nothing wrong with holding the trend IMO but there is also nothing wrong with flipping within either.

We do not "Make the Market", the "Market Makers" do based on supply and demand and liquidity.

They take the price in the direction of the most liquidity within the supply and demand range, therefore the supply and demand will naturally keep the liquidity moving from one extreme to the other as the MMs exaggerate these fluctuations, pushing it from overbought to oversold and visa-versa by the liquidity.

That being said: I do not believe "flipping holds the PPS under fair market value" because flippers are not the cause of the fluctuations, the MMs are. The Flippers just accept this and trade it accordingly.

It is a dance and most do not have the resources to "flip" but those that do, are simply going with the natural flow of things as dictated by the structure of our market.

All JIMO