InvestorsHub Logo
Followers 5
Posts 231
Boards Moderated 0
Alias Born 01/22/2018

Re: Jacob76 post# 1021

Tuesday, 06/05/2018 7:06:56 PM

Tuesday, June 05, 2018 7:06:56 PM

Post# of 1154
It is more just paying attention. All the MMs are buying and selling based on their algorithms. They are there creating the market (just as they are supposed to - i am not a believer that MMs are out to screw us investors).

When the MMs start to run short inventory, the short position mitigation algorithm kicks in. This makes their moves somewhat predictable. Also, depending on how short they are, more drastically algorithms kick in.

Under a normal market, these algorithms will stabilize the situation. But when nobody is selling, the algorithms fail. Last ditch algorithm is to buy shares at whatever price we want so the short position is covered.

This is why the daily charts have maintained a pretty consistent pattern over the past month.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.