Replies to post #195087 on Wave Systems Corp. (fka WAVXQ)

[dig space]

A notion on orderly markets,
Using the 50SMA Wave has been valued in the mid 3’s for some time now. Considering the notion that Russell rebalancing is actually a DISorderly event, an entirely arbitrary demand. So, that demand is created by a bunch of variably conservative unmanaged funds. Grammas, grandpas, retirement annuities with some smcap exposure and so on. Let's say the 5 or 10 million shares was allowed to do its thing. The shareprice runs to 10 or 15 in a day (I like many of you see the tea leaves and dump into it). Two weeks later it settles right back to the mid 3’s where it was. Gramma, and grampa are left holding the bag. Would that have been “orderly” or was it the JOB of the MMs to buffer a well advertised well recognized disorderly event and essentially smooth it out and allow the equity to continue to be traded at more or less what the market has been determining for some time. Should the MMs allow a rebalancing to cause price and MCAP fluctuations of 300-500% or should they buffer the storm of a well advertised rebalancing.

I think they did their job.

[Weby]

Internet and Dig

I don't have the foggiest whether the naked shorts were 1 million or five million or none at all. As has been suggested, there are many, many possibilities for the volume. Funds may have been buying shares for months for the purposes of closing deals today. While shares could not go into the index until today's close, the size of many of the funds would allow them to slowly accumulate them outside the index funds and shift them amongst and between. Game players play games. The smart money guys have had a long time to accumulate trading positions to sell to the market makers who can resell to the folks that needed them today. That's what they do!

Dig

Glad you finally see the lack of risk with your 7 shares. Government is slow most of the time, but don't underestimate by thinking it is always slow. That same government built millions of ships and tanks in record time when it felt seriously threatened. The country's whole mood is changing in the face of fear. People move when they are threaten by job loss whether they are politicians, CEOs, or generals. Do you think it's a coincidence that the CBS report on cyberwar is played a week or two before there's a draft bill in congress on Cybersecurity and this draft comes out. The national leadership is seriously concerned about their security --- the security of electricity and their corporate investments. American wealth is being attacked -- both actually and potentially -- and this giant of a country has been underestimated before. It will be slower than we like, but not as slow as you might think. Everybody hates their collection of passwords and the evil possibilities. The stars are truly aligning for the paradigm shift.