Ihub's Epic Quotes

[Bull Finch]

Great post!

"Important for any investors


1. Bashers first get paid in shares given to them by MMs when MMs are holding enough of a surplus of shares so that they can spare some.

2. Bashers hold the shares in their accounts until instructed by MMs to sell. This usually happens when MM supply is running short. MMs will raise the bid and ask simulating a small run-up for no apparent reason (an upside shakeout). Buyers may be buying temporary phantom shares if the MMs run out of real shares. There will be less buyers at the higher asks, and more sellers at the higher bids. At the top of the short runup MMs will short or naked short, then walk it back down. When selling pressure starts to weaken, MMs will instruct bashers to sell their few shares to keep the selling momentum going. Some weak hands may panic when they see this series of small-volume sells going through, and even though buys at this point may have larger volumes, MMs will drop the price on the smaller-volume sells. When the bashers and panic sellers are done selling, MMs may drop the bid price further to take out stop-loss orders placed by those who bought at the top of the runup, keeping the ask high to discourage further buying, cover their shorts low between the wide spread, then raise the bid to tighten up the spread and encourage further selling by weak hands. Once MMs have accumulated enough shares, some of the phantom shares bought may be embodied.
This tends to happen more often during the last week of the month, when MMs have to balance their books, and embody all the leftover phantom shares bought earlier in the month."~puppydotcom


5T WD haha

BMFL<OD

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