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Re: Toxic Avenger post# 139960

Tuesday, 06/29/2010 5:20:37 PM

Tuesday, June 29, 2010 5:20:37 PM

Post# of 179214
Yes the 10K was a trade, but the interesting question is who was on both sides of the trade: retail exchanging shares with retail, MM selling to retail, MM buying from retail, or MM exchanging shares.

You can write the following comment off as hearsay, but I used to know a guy who was a MM for many years, and he said that (unlike the big boards), MM's generally hold positions (sometimes small and sometimes large) in most pinkie stocks in which they make a market. They are more realistically considered dealers. It's permitted in their charter to make a market. He also said that much of what they do in terms of price action in pinkie-land is designed to unload excess inventory or load up inventory if they are lacking or short. Depending on what they want to do in terms of their positions, they may fuel a run, stall a run, start a run, stop a drop, fuel a drop, etc.

Many of us on this board would argue that our friendly CDIV MM's are desperately trying to load up inventory to offset a large short position.