Ayala Pharmaceuticals Inc (ADXS)

[jaxstraw]

Market manipulation is very real, but its done by TRADERS, not 'the market makers'.

,I predict that the MM`s will be right back to business as usual.

Market Makers are simply automated computers in this day and age that are there to add liquidity to the market by buying and selling peoples shares. They don't have some "agenda" where they are trying to knock down the pps or raise it up.

Many full time TRADERS though use a "prop trade" ( or proprietary trader account) that allows them to enter in manual routes, select what ever market maker they want, and even hide shares. If a security has high liquidity , it can be controlled to make profit on small spreads since the volume produces multiples.

Remember, a million shares of XYZ with the difference of .01 is $10,000 in profit. Move 200k shares a day over a week at .01 spread and that is 10k in someones pocket. Easily done with highly liquid stocks.

When people see down ticking, bid up ticking, etc, that is simply a trader who has access to a direct route trading account( prop trade) that allows them to select what ever MMs they want and move them to what ever price points they want.

I could literally go on there, and place sell orders on the ask side at 5 different price points, using 5 different market makers.

If you were watching level 2, You would see posts screaming about how the "MMs are stacking the ask" and "playing their games". The MMs (who are basically all automated now) didn't do anything that someone with either a prop trade account, or a retail investor such as you and I, didn't tell them to do.

"Market Makers" are not going out and buying shares and holding the price down and bid wacking... The market makers are controlled by who ever is using them... IE (if I had a prop account) could get on NITE , HDSN , CSTI, AUTO myself and lower the ask to 1.25 or what ever, and stack a bunch of shares on it. Or I could get on bid, and up tick it, etc. When you see that happening that's not the "market makers" doing it, it's what ever stock trader that is using that market maker doing it.

If you see the ask "stacked" with what looked like a wall, and then after it get's hit it "goes away" right away, that again has nothing to do with the "market makers", those are trigger trades. If I see someone get on the ask with a big buy, I can jump right behind him at the same price with a large number of shares to make it look like a wall, but I can set a trigger to automatically remove my order once that price gets hit. It's as simple as that , there are no "dirty Market Maker games".

I can also do "iceberg" sells on the ask where it only shows "X" amount of shares, but every time someone slaps it more MMs keep popping up once one gets knock out.

To the inexperienced this looks like the market makers doing these "tricks" but in reality it's done by the traders. If a market maker moves to a certain price, down ticks, up ticks, puts up a fake wall, hides shares, stacks the ask, etc... etc... etc.. they do it because a trader is routing their orders through and telling the MM to do this at this price or that at this price, not because the MM it self is doing it on it's own.

So please, don't blame the market makers, blame the traders who are using them, as they are the ones controlling how this, and every other stock trades.

I've got two close friends that work(ed) for Knight Capital and one of them now works for Jeffries. Believe me, they are not sitting around playing the thousands and thousands of stocks that trade. Machines do that and all they do is route orders from traders

The only time they actually deal 'hands on' with stocks is when they are used as the companies Market Maker specifically ....IE, such as introduce shares to the market when the company raises the OS and dilutes with an offering.

And although I have 'poached' some of this text from another investor I know, it coincides with what I know for fact and could not have worded it better.