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Kailster

06/05/18 7:06 PM

#1022 RE: Jacob76 #1021

It is more just paying attention. All the MMs are buying and selling based on their algorithms. They are there creating the market (just as they are supposed to - i am not a believer that MMs are out to screw us investors).

When the MMs start to run short inventory, the short position mitigation algorithm kicks in. This makes their moves somewhat predictable. Also, depending on how short they are, more drastically algorithms kick in.

Under a normal market, these algorithms will stabilize the situation. But when nobody is selling, the algorithms fail. Last ditch algorithm is to buy shares at whatever price we want so the short position is covered.

This is why the daily charts have maintained a pretty consistent pattern over the past month.