InvestorsHub Logo
Followers 5
Posts 65
Boards Moderated 0
Alias Born 11/19/2009

Re: Nullroute post# 18278

Tuesday, 04/20/2010 11:24:44 AM

Tuesday, April 20, 2010 11:24:44 AM

Post# of 34483
Yes, if the price shows some sign of up-trend, I think daytraders and short-term traders will come, and flippers also work. These activies will increase the volume, which the MMs need in order to cover.
I also curious about what will happen, when the volume reaches certain amount that the MMs currently need. Let's say, the MMs need currently 50M to cover the shorts that they sold last 10 days; They slightly increase the price to cover; however, what if, suddently, a flood of buyers come again. Then, even though the volume reaches the amount that MMs initally planned to cover, they have to short again.

My thought on this scinario is just my own humble question. I am never an expert on stock trading. I hope some experienced and seasoned experts shed more light on this matter. Nevertheless, I am afraid that the MMs must cover 13 days, not 15, their shorts, which I have learned from this board,though still not certain.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.