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Re: shamokinite post# 37719

Tuesday, 08/03/2010 4:16:02 PM

Tuesday, August 03, 2010 4:16:02 PM

Post# of 83081
MM's can trade two ways.

They can buy and sell stocks for themselves which could include Shorting or they can buy and sell for clients.

All brokerage houses have MM's they use to place trades for them but they will choose MM's that can close all trades.

As a result they have to pick volume traders which are confined to MM elite.

NITE is used by many of the top Brokers, the other volume leaders are ETMM,UBSS, AUTO,HDSN and DOMS.

VERT has also been active in SGCP.

MM's buy on the bid and sell on the ask.

In a healthy market if you want to buy you will have to pay the ask and if you want to sell you have to sell at the bid.

There are exceptions to that rule.

Any of the MM's I listed could buy for themselves or their clients.

Those that buy for themselves can work with others at times to incite drops or spikes.

Shaking the tree and dead cat bounces are examples of that. They can occur when multiple MM's want to see the stock go the same direction which is usually down.

Volume traders will never get stuck in a run. They simply buy at the bid and sell at the ask.

It will not matter how high the price goes and if one does get in a tight position although I have no proof I expect they bail each other out at times.

If MM X needs 5 Mil at the bid MM K may give them to him for future or past favors.

They have an intricate communication system that I expect is always changing.

It is not unusual to see a tiny volume or value trade go in worth less than most broker fees which predecede a stock price movement.

These are referred to as signals.

Much depends on the market itself and if investors are buying it should place upward pressure on stock price and if they are selling it puts pressure on a downward trend.

The truth is the OTC BB and PinkSheets are controlled by MM's and we can not trade without them.

We are therefore subject to any manipulation they may bring.

We as investors here would rather see volume traders as opposed to MM's known for Shorting as is IMHO AUTO.

With volume traders it doesn't even matter to the MM's if the stock goes up or down as they make coin either way.

It is therefore not necessary for them to keep the price down.

There is so much more to say if anyone is interested and only the MM's themselves truly know all the details but much can be gleaned by simple observation and dd.

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