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Re: ToddWH02 post# 67544

Friday, 03/02/2007 1:31:16 PM

Friday, March 02, 2007 1:31:16 PM

Post# of 82841
It would be pretty dumb for a broker-dealer not to play by the rules on securities where the SEC has an active interest like in this one.

Whenever unexplained trading activity occurs (usually when the price is flat or down), many retail investors quickly blame broker-dealer manipulation. Like in every industry, there are indeed rogue individuals/firms, but the percentage is relatively small. Oddball trading patterns we see are often due to something else such as: dilution, shorting against convertibles, daytraders/momos, shady insiders, email spamming, pumping campaigns, account hackers, etc.

Practically every day, I watch daytrader/momo gangs run up and short down different stocks. Over on other forums, longer term holders will blame what they're seeing on MM manipulation instead. Anytime you get the urge to blame broker-dealers, try looking around for other causes. Most times it will be something else.

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