PKG -I didn't mean to insult you - but in your(justified) war against pumpers, you sometimes sound like the opposite - a basher.
Yesterday - you said people want to get out of this stock......
If you had level 2 you would have seen - HARDLY ANYONE WAS SELLING - it was MM's all day trying to AXE the pps - buying and selling BLOCKS..........
The Level 2 display is a way to see into what the NASDAQ "Market Makers" are doing.
A Market Maker(MM) = a person or company controlling a large inventory of shares of one or more stocks.
[b/](On the NYSE, they call them "specialists" and they can only have inventory in one stock.)
But with the NASADQ(also the AMEX, OTC and to a lesser extent pink sheets)an MM needs to only have a ton of shares to play "THE GAME" and keep in mind - they are usually playing with lots of different stocks at the same time.
There are hundreds of Market Makers or trading houses like Merrill Lynch and Goldman Sachs etc. They are also made up of electronic exchange networks or ECNs that are trading on the Nasdaq exchange, such as Island and Instinet.
The ECNs are exchanges that represent the buying public, though any market maker can access and use them also. They can aggregate(sound better?)their trader’s orders and try to gain the strength of a large Market Maker.
Market Makers and ECNs are indicated by the four letter ID code (MMID), Merrill Lynch is MLCO, Goldman Sachs is GSCO, Island is ISLD, and so on.
When there is trading like we saw yesterday - There is always an MM called "THE AXE"(the name of the Market Maker who has the most influence in controlling the direction of the stock.)
The word AXE means to chop away at the pps so that it does the most damage (or good if you have a short position)
The AXE is always an expert that has a reputation of being able to get great prices for his clients, and knows how to swing it,when it comes to influencing the pps of a stock.
Perhaps the word influence is best - because no matter what the news is on a stock - the AXE might be sitting on millions of shares, so the AXE can easily go against the flow - fight the tide and control it, and even turn it around, until he gets what he wants.
The AXE plays both sides of the fence (quietly and secretly)buying and selling to himself.
Why would he do this?
He might be trying to get rid of a large position.Part of Market Makers jobs are to sometimes liquidate large holdings of shares.
They always do this secretly and attempt to quietly pour the shares into the market and have no one realize that they have a lot of shares to sell.
They will fake away the entire day to try and manipulate the stock and give the impression that the market for it is going up or down in order to generate more buy orders or sell orders.
IMO - (and this is where OPINION is important)
In the case of DKAM yesterday, he and other MM's may have some sizeable orders to fill now or in the near future.....
It worked just a little bit yesterday, and it looks like today - he's at it again - buying and selling, making it look like people are dumping shares, when in fact - its just him, trying to shake out the weak investors (BTW - there could be more than one AXE)
One thing I've learned -Its been my experience that MM's usually dump and buy back in nice neat little blocks (5,000, 10,000, 20,000)
Why? because it makes it easier to keep track of - they usually have multiple stocks to deal with.
From what I see - people just aren't selling - which means we have support at around .40, and that should be a sign the pps will be back up around .50 soon.(its all really about supply and demand -the "supply" is just an MM illusion and there is definitely demand)
Thats the END for me posting today - In just had to get that out of my system - now I feel better..................
Experience - It's what you get when you don't get what you want..............
