InvestorsHub Logo
icon url

asegal1228

03/29/12 11:28 AM

#30362 RE: HIS MONEY #30361

Yesterday was the only day this week where buys outnumbered sells and you closed red.

In could mean a lot of things. If you remember some of the huge volume days prior to the dump you saw a lot of days where sells greatly outnumbered buys but you closed green. It could just be compensating.

It could also just be the MM temporarily shorting the stock to make a market thus meeting the bid.

Now before you guys jump up and down screaming short squeeze or NSS, you should know that this is perfectly legal and is done all the time and the SI does not amount to a hill of beans. In fact a market maker can be fined and terminated if he fails to "make a market". Also note that any short position entered into by the MM is likely temporary and short lived. The only way to avoid this is to maintain an inventory of this stock which no MM is going to be willing to do on a pump and dump like this.

jmho