For the most part, mirror trades are great. It means that market makers (MM) are doing their intended job of matching retail trades. For example, MMs will buy shares from one holder at .0091 and sell those same shares to another holder at example .0095, and then, the MMs pocket the .0004 difference, which represents their fee for handling the transaction.
To look at it from a traders perspective, mirror trades confirm that:
1) MMs are relatively short on inventory, because they need to buy on the open market shares in order to fulfill buy orders; and
2) no new shares are being dumped to replenish the MMs inventory through CDs or Company dilution.
The bad, MMs could be using mirror trading to walk the pick down, also. But this has not been my experience.
In conclusion, mirror trades can mean that the float is really tightening up as it is being bought by investors as opposed to being bought by day traders and swing traders., and it confirms the company is not diluting.
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