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Monday, May 31, 2010 11:08:40 AM
Did you actually read this persons post?
Did you understand it?
....when a stock goes up..... and goes up too high...the market maker will short the stock to bring the price down....to take the momentum out of it....this is why you see double and triple tops sometimes if there is a lot of MOMO......people will then start selling....then they *the marker makers* end up on the reg sho list for being short....and the only people on the reg sho list are the market makers....no one else....when the price comes back down (ususally they bring it back to the original break out point or the bottom of a pendant or channel) the market maker will absorb any sellers....in other words....he buys their shares....and he puts them in his inventory.....then when the market maker is ready (meaning he has enough cheaply bought shares) he will "Let it run" again at some point.......and I do mean "LET" it run ....the MM alone will determine that time....he will then buy back the shares he shorted (cover) and sell them.....along with all the other shares he took (stole) from sellers..... back out to the public......at the higher prices ....."this and the spread are how they make their money".....
So, what I am to understand from this persons post is that the MM will short, drop the pps, then buy, let the price go up AND THEN cover his shorts? That doesnt make sense. Heres what I would do, short, drop the pps, cover along with acculmulate, then sell at a higher price. Id sell to every painter out there. As a matter of fact, I think you guys should start painting tomorrow....... :) UNREAL!!!!!
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