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Re: A deleted message

Wednesday, 04/29/2015 12:49:00 AM

Wednesday, April 29, 2015 12:49:00 AM

Post# of 26950
A quick quote from the article:

"Market Makers do not relate to long-term holders. That makes absolutely no sense whatsoever. They feel a large percentage of trades in the OTC market consist of short term and day trades. Market Makers merely view the barrage of buy and sell orders as relatively neutral to the market. How they figure it is when the average dumb money buys shares in a company, the Market Makers feel or rather know with some certainty it is very likely that dumb money will want to sell back those share relatively quick on the slightest drop [or some bashing for that matter]. Now somewhat comfortable with that logic the Market Maker merely short sells into the buying and attempts to take the stock down in an effort to "shake out the weak". Since it is tough to know for sure whether a move is a beginning of a trend, or a routine shake-out, this type of deception works quite well for the Market Makers. What long-termers do to a stock is surprise the Market Makers because instead of falling the shorting has no effect and the price goes up. Now that puts the Market Makers at selling low through shorting and thus having to buy at high in order to cover."