Market Makers Positioning?
posted on
Jul 22, 2009 10:31AM
I think the MMs know something we do not.
They're consolidating and moving the SP bid/ask range up faster than the actual SP is moving. This looks to me like they're positioning for something upcoming.
The volume is still very low (as a % of float) and the SP fairly volatile, although gaining slowly but surely.
There are now only 7 market makers at or below 2 cents. There are now four MMs at or above around 8 cents.
Just a few weeks ago, there were 10 or 11 at or below 2 cents.
Suggest you carefully watch these trends of where the MMs pricing lay in the Level II table.
They can change in a second, meaning all of the above may actually be meaningless.