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Re: REAZO post# 40044

Monday, 09/29/2008 2:40:06 PM

Monday, September 29, 2008 2:40:06 PM

Post# of 51429
WHy would they disagree with her?

Someone shows they are willing to buy HMGP at the Ask (.032) and very shortly thereafter the MMs drop the Ask down to .028...
That's all backwards...
In the real world, demand is supposed to move the price up.

If you own a retail store, and you note that people are really buying up the purple construction paper, do you run out there and lower the price on your purple construction paper?
NO! You take advantage of the interest in the purple construction paper, and since your supply is finite, you raise the price. Demand for the paper, vs. the supply you have on hand, says the price should adjust upward.

But what we witness daily with HMGP, is whenever someone buys at a favorable ask, and moves the SP up, the MMs DROP the asking price in response to the demand.
How much sense does that make?
None, IMO.

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