willsimon
IMO Periods of low volume, no trend, and tight PPs spreads are periods of accumulation, with all stocks. Who ? Probably everyone that can, other then day traders, who are gone, but a stock that once made them good money, stays on their watch list for a couple weeks, just in case.
So who is selling, if everyone wants to accumulate? I have no idea, but a guess, of what happens.
Not day traders, they place large block orders, which are gone with them.
Small Spec. traders, average trade size 10k with a .01 or .005 spread is for $50 to $100 expected profits. Should be small players trying to earn spending money or supplement their income. The guys that can't afford to lose, but have not learned the game in penny land yet! Plenty out there. Sitting at the computer each day, with their finger on the mouse, waiting to panic or get excited!
MMs are in business every day, no volume = no fees, no rev's. They have to trade their inventory to stay in business. I also feel their way to accumulate during these times is SLOW gradual walking the PPs down, until the small spec player looses as much as MMs can get.
As the MMs collect small daily amounts of shares, the losing spec players disappear and the volume gets smaller and smaller, until there is no one left to take their shares.
Next is a small pop, from MMs selling some of the accumulated share for higher PPs, to draw attention back, or a run, because of a company happening. Where the game starts over again.
Longs, I can't think of a reason any long would sell.