DD Support Board and Research Team

[tedpeele]

To clarify, the algorithm I'm talking about is a computer algorithm -- ie yes a program that follows certain rules.

I am saying that it is obvious that a program is being used to put up 'fake' asks because when I attempt to fill it it immediately is changed.

I have speculated that's a program used by the mm companies. Not a market maker as in a person - but the program that actually makes the market for penny stocks.

It has been suggested/claimed? that this would be illegal but I'm not sure why. It isn't 'making' me do anything I want to do. It is similar to a 'bluff' in poker. Seems legal to me.

Anyway, my original question was whether such a program might be attempting to 'discourage' a price rise following a period in which a stock has fallen dramatically (as would happen with scams), or whether the programming is more passive in nature - or very short term in nature only.

My example was CMGO - which despite reporting great earnings for 3 quarters the price has been very weak since the stock fell dramatically on failed expectations. Retailers are skiddish from that, but another possibility is that the mm program has a long-term element that takes advantage of that skiddishness not just on a day by day basis but because of that prior dramatic fall.