Tuesday, July 17, 2012 5:11:45 PM
You must be looking at some seriously screwed up information source!
Obviously it is impossible for the volume to go down during the day.
Trading was extremely light this morning, less than 4,000 shares when you made that post, but between 1:58 and 2:10 a big seller came along with ~200,000 shares, most of them sold below the bid.
Some buyers late in the day caused the price to rise back up about .4 cents and the day ended with 257,218 shares changing hands.
Light, but respectable, volume.
RETAIL volume (buys at the ask, sells at the bid) has been low for the last ten days or more.
If it weren't for a few retail buyers the MMs would be able to take this down to .04 or less, causing maximum falling panic and collecting as many shares as possible at ridiculously low prices so that when the expected announcement comes they will own most of the liquid shares and make most of the profit on the rise.
Talking about possible gaps up:
When a situation develops such as seems to be happening here (more than 10 million shares, a significant percentage of the liquid float, in the hands of the MMs) and given that the MMs pretty much totally control the prices at which retail investors can buy and sell the stock, it is likely that the MMs will themselves create an effective gap up by enforcing an unnaturally high spread when the stock is starting to move.
Remember that an MM can delay your buy as much as 5 minutes, while they make dummy buys at a higher price, so that they can leave your order unfulfilled, and then sell back to you at much more than you would have paid earlier.
In other words, if there is not a natural gap up, they can remove large quantities of stock from the retail market for a few minutes or hours to create their own gap.
Mike L.
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