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Re: jundtman post# 12193

Thursday, 12/23/2010 12:21:11 AM

Thursday, December 23, 2010 12:21:11 AM

Post# of 263702
Have to agree about MM manipulation.

It's their job to manipulate the PPS inorder to create liquidity and market trading. I've been practicing flipping with another stock that has predicatable dip periods with decent, but not overwhelming volume. For over 15 minutes there wasn't any trading, so the MMs brought the PPS down until people started buying or selling again. When people bought enough of the ask to close the gap, the PPS went back up. For uncertain stocks like this, there will be more volatile manipulation because when people see the PPS going down, they think its a sell off, but it could be just a rhythmical dip by the MMs to test the market confidence. Then the fear sets in and BINGO, you have the market sell off you've been waiting to jump in to.

Extreme manipulation is hard to tell because of how fear is more than willing to be a co-conspiritor compared to balls of steel that can wait for the dip phase to pass and the PPS return to a reasonable level. Then again if you sense that fear is going to take hold in the market, you shouldn't be the last one standing on the sinking ship because of those heavy weights hangin' off you.

IMO

Best to all.