Re: Action today was odd...(GATORMAN)
in response to
by
posted on
Jun 19, 2009 05:19AM
I will regret responding..... please do not get defensive… or talk down @ me like you did in your first post,,,, you are well written I realize I may not write in a clear manner….. I think we can be civil about this…
You did not answer my Question directly…. I think you have changed your tune though… MM can and do hold stock & short stock?? Do not want to put words in your mouth..…
When I started my response the factor that you needed to agree or disagree with… MM’s can and do hold stock…. Or MM’s can and do naked short stock…. Just answer this and we can move forward…
With the statement below you are implying the MM’s are working in the market buying selling shorting..(that means they are not acting as an agent for the market but are playing the market…)
Now if the MM is moving the bid/ask around and playing with the spread........ other MMs will join in... why? Because they are not going to sit and watch some other MM make $$$$$ on the spread.... they will get in on the action..causing the spread to narrow.
You said this a couple of post ago…. Which I think you have moved on somewhat…
NITE takes 0 zero risk on a position of the stock and makes his money based on the .005 spread.
I will guarantee MM’s own shares; sell shares, short shares on a regular basis….. To what degree… that is a debate….
This is a flat wrong statement… if the BID is .14 and the ASK is .15… a sale goes through at .15 is it buy or sell???? (Answer) it could be a buy or a sell… If you disagree with this then we will not continue this conversation…….
---This statement is incorrect. The MMs "buy" shares on the BID they do not sell shares on the bid. Joe Trader sells his shares at the bid - the MM takes these shares and fills them at the ask. The MM "sells" shares at the ASK.
SO you agree they will take postions..
Market Makers may take positions based on the actual or short -term analysis of a stock. No market maker is going to to hold shares for several days hoping for the stock to go up... or the stock to go down.... they are not in the business of long term position holding. Its way too big a risk to take......... So when Swartz was selling… you think there is NO possible way the Markert maker took a long term position or many short term postions???? Once again I said I would not convince you but What I was ask
It does trade after hours so I think you are agreeing because you changed from NO trading to No trading for a normal trader… …But are adding some sarcasms for some reason I think we have an agreement no trading for normal traders( but you could do it if you wanted to)….
Regarding the after - hours trade.... again.. good luck with that.... buy some stocks tonight at 11pm and let me know how it goes.....
The shortsqueeze link a link to show you that you cannot short PTSC through your broker but buy a service and software you can… that is a fact…