What Do you think of this. I had a better one that pointed out how MMs work and how it is the oppisite if what most would think. But here is what most think imo.
Posted by: Trader S77 Date: Tuesday, January 19, 2010 9:00:39 PM
In reply to: The_Free_Nebula who wrote msg# 12969 Post # of 27141
Not necessarily, the MM's mainly NITE are big volume players in the penny and sub penny stocks. NITE can and at times has controlled a stock in various occasions, moving PPS in a controlled fashion higher and lower.
"IF" NITE is able to hold a rather large position in KATX or any other stock (which NITE does on a consistent basis) than even if volume and buys on the ASK pour in, "IF" NITE wants to hold the run, NITE will not U/T on the ASK and keep the ASK at the same PPS, as the buying pressure dies down and sells come through, NITE can drop the BID and lower the ASK.
Since NITE is usually in full control of the majority of penny stocks, other MM's tend to follow NITE's lead. ETMM, DOMS and HDSN are other notable names, however NITE is by far the volume leader.
The MM's will also play off technicals in a given stock. If one looks at the 60 minute / 3 day chart for KATX, we will see that the MACD went bearish today as it crossed below its signal line, because of this PPS was not able to break any higher. The MM's of course see this, and will tend to play down the stock because of the bearish technical(s) and of course vice versa if the technicals showed a bullish signal.
So IMO, yes the MM's can and do change their minds dependent on various aspects of the stock in question, including charts and technicals.
