MM tactics:
I was watching VGIN this morning, after getting a #trades alert.
SLKC was on the bid constantly as it rose, showing only 100 shares, but sucking-up all they could. They had the highest #best - more than even ISLD.
The price turned around at 45, and SLKC continued to be on the bid. At some point, the reversal accelerated, and SLKC was now on the offer. I notice that their #best on the offer side, though, is relatively low (1/3 that of INCA, which had the highest #best).
Clearly, SLKC was accumulating VGIN. Perhaps for inventory, or perhaps for a large customer. I presume the latter, since nobody else was that agressive.
What I thought was interesting was the switch to the sell side. Is it common for a MM to sell-off a few shares to give the impression that they are done buying?
I see they have now back to bidding 1/8 above anybody else...
This was a nice study, because the stock was moving on a relatively few # of trades (despite the #trades alert that I got - it had an initial surge, and then got relatively quiet). Anyway, slow enough to get a good idea of what was going on. |
