IMO there is a MMM problem, lets face it....when you
read the filings of some of these market makers where they have sold billions (yes thats billions of shares) that they
have not yet purchased, that IMO leads to market breaking not making. You constantly see the opposite effect of stock PPS on news, positive earnings, etc. this is because they are short plain and simple.
Not saying all MM's are manipulative, however I am saying
as to having a trading stradegy it should invlove knowing which MM's are not playing by the rules.
(just one example)
From recent filing
Knight Trading Group
Liabilities
Securities sold, not yet purchased,
at market value $3,165,141,569
everywhere I look NITE is on the ask pushing down PPS
this is an effort to buy back the shares they already sold.