InvestorsHub Logo
icon url

tchalla

05/04/07 11:04 AM

#4013 RE: SuperC #4011

The problem is that continual shorting (which is what mm's do when they have a lot of people trying to buy on the bid instead of the ask), creates weakness that is sometimes irreversible. When that happens, the mm's see that nobody is willing to support the ask, so it is a sign of weakness to them that lets them know they can short sell it to those bid buyers and then push the stock down further to cover. The problem with that is that it often generates selling momo instead of buying momo. After awhile, the psychological damage is done and investors stay clear of the stock instead of buying it at the so-called "cheap" or "bottom" prices. We don't have news and we have no momo. This is the time to support the ask and not sit on the bid.