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Re: cjstocksup post# 27683

Tuesday, 05/24/2011 2:20:24 PM

Tuesday, May 24, 2011 2:20:24 PM

Post# of 93140
It would be great for long term shareholders IF we could 'take him out'; NITE. However, just remember back in the .005s NITE always held a hand of roughly 80M shares so that MM likes to play with about half of a million dollars in SFIO. I have a feeling that with the erroneous shorting and flipping along with how quickly this ticker moved up into the multiple pennies, NITE and others probably found themselves without a large sum of shares once the pps was above 4 cents. Also I cannot believe that NITE and others would not sell out completely on Friday for whatever gains they had by that time. Therefore if you assume that they wish to play with about $500K and the pps is at .05 then you can IMO safely assume that the new block of shares they will be wielding is a size of roughly 10 Million shares.
Can we see volume of 10M in the next two hours of trading? Sure, I think so. Can all of that volume be buyers bidding up? Sure, it is possible though unlikely. Can it be the case that all of that buying pressure will go directly into buying out NITE specifically? Nope, unfortunately I think not even half of that kind of volume would go to NITE, maybe 1/4 or so.
Therefore, I think that it is really not possible today to 'take him out' but I do think that on a PR news day if buyers come flooding in and volume increases substantially that in a matter of hour(s) the MMs could once again be in a position as to not have the necessary block of shares to control the immediate price action (bid/ask). The price action will be dictated by the MMs so long as this stock trades with an intraday volume of less than I would guess say about 30M shares (+/- 10M). Otherwise we must get used to the fact that many MMs will be around in this stock for many weeks to come until several factors push them out over time; greater number of 'longs' with a greater amount of the float holding tight and not selling, greater intraday volume, sustained buying pressure which should allow the pps to slowly appreciate.
Of course, there will always be MMs trading in the name for all time but of course once the ticker reaches certain market cap levels along with much higher normalized volume levels then the affect and conrol those MMs will have will be greatly diminished (eventually to a point whereby their presence is insignificant).
Until then, we have will have up 20% days followed by down 20% days ad infinitum. Why? Because the lack of sellers and/or buyers allows them the opportunity to slip their tentacles in and control the price action in the midst of very thin trading action. Basically, they can, and so they do.
You can certainly play their game and flip and trade each day along side them in order to try to make some money OR you can just be long and disregard the daily action, though this is easier said than done which is why most long term investors cannot handle the pain day in day out and so they capitulate. Know what you own and already have your own valuations and ranges for making your buy/hold/sell decisions over the long term. Selling entails as much risk as buying and vice versa so all should also realize that day trading in a sea of MMs can be very dangerous for little fish. Always keep in mind, whatever faux 'gains' you 'made' (unrealized) from a day earlier were GIVEN TO YOU BY MMs a day earlier, it means nothing, do not get attached to the 'gains', they are not yours, just in the same, the 'losses' imposed on you on such days like today is also faux/fake/phony, it means nothing, the value of the company remains the same as it did yesterday, do not think that the MMs have 'taken' from your pile of 'gains'; you never owned any 'gains' yesterday in the first place! So this mentality helps traders/investors a little in the day to day struggle of decisions in the market.

Do or do not, there is no try.

GLTA!
Volume:
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Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y