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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel?
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To: Mike Milde who wrote (7005)6/24/1999 2:47:00 PM
From: rumble_maker  Read Replies (3) of 20297
 
Mike,

A market maker that is trying to buy stock to cover a short at say 29 1/2, will make a stock look "weak" so people with fear will give their shares up. It is common to tank a stock after you have sold shares for a client. At the end of the day, when you give that client a call with their average price, you need to make sure you did better for them then the average price. To do this, you will hold some of their order until the end of the day and just ruthlessly sell, driving the stock down.

Right now, in our CKFR, the market makers have order flow. They know where they can execute trades. They will trade the stock, directing it towards where they have buy orders or sell orders. Why is this so hard to understand. It doesn't matter if a company has 1 million or 1 billion shares, it is being manipulated during the day.

One trick that is used is when a market maker will use their name to influence people. You see it with upgrades, why don't you think this would work within the day when you look at a Level 2? If a trader see's a big name on the offer, they first assume that firm has stock to sell and will wait for a pullback to buy. If the same market maker continues to be on the offer when the stock, it puts off buying even more. The market maker also can have an ECN like INCA or ISLD, or even a wholesaler on the bid taking in stock. In this case the market maker is trying to "chase" stock into the bid.

Trust me, it happens.
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