8000 Incorporated (EIGH)

[MustBeFree]

There are a couple points that should probably be made...

1) The MMs are not stupid. There is HUGE money in the financial markets. This allows them to hire the best and the brightest minds out there. They are overconfident and egotistical. Who can blame them. Their tactics work more than 99% of the time, why would they believe they wouldn't work here?

2) They continue to work the PPS because they the game is being forced on them and they are trying to maintain control. Can you imagine what would have happened if the started covering as soon as the news hit yesterday? Most retail investors do not even bother to read (absorb) news. They judge the quality of the news by the reaction of the stock price. Had they started to cover and caused the stock to explode, the dumb masses would have piled in. Instead, they worked the price down to give the impression that the news wasn't good. This effectively keeps the dumb masses out and potentially causes other longs to sell. But judging by the volume, they were not successful in the later goal.

3) The MMs (institutions) will not go broke. In fact, it is likely they will actually make money on these stocks even if they squeeze. Only they know when they have covered and they may very well go long after covering and profit from other greedy investors jumping in at the end of the run.

4) What is happening here is bigger than EIGH. If there really is illegal shorting going on (likely) then the MMs risk it being exposed. If they lose this battle (which they are), it sets the script for how to take on illegal NSS. In the end, the MMs will change their tactics and find other ways to make money. But they don't want to lose a cash cow they've been benefitting from for years.