Market Maker Fear and Manipulation.
Float is locked by longs who are not selling. So what is happening. MM are shorting in order to make a market and need to cover. This is compounding the issue for Market Makers. The more they short and force TALK down, the more longs buy and wait. Rinse wash repeat until news or MM move it up a leg.
Once the MM is caught short and the strength of the buy is overpowering the MM will want to cover his short position. This down tick gives the illusion of weakness designed to hopefully begin the bear raid of selling. The fickle, fearful, day trader, momentum and short term begin to sell out allowing the MM to cover his short position at lower prices. They will move it down quickly to get it to a price of least financial damage. Problem they have is long-term investors. We're accumulating and buying more.
Nothing I state is intended to be a recommendation to buy or sell, opinion only. Readers are solely responsible for how they use the information.
