Bob,
I absolutely agree with you that the MMs will play with a stock. I was just pointing out that your buying into a stock at the ask price, followed by a MM purchase at the bottom of the spread does not equal manipulation. That's what the difference between the 7/16 and 13/32 was. You might get into the stock somewhere in between but only if the MM feels top heavy on the bid side. Otherwise the MM doesn't have to sell to you. I've had sell orders at the MM bid not kick in when in competition with an order to sell at market - in which case the MM lowers the bid temporarily to cheat the seller (it's a strong word, and the MM is allowed to do it within a certain percentage, but I don't know what else to call it). If the MM position is big enough, they might even not buy at the bid, but will hold it steady so they can sell off at a higher ask price. I would never submit a NASDAQ order "at market", except as a protective stop loss.
Would love to see the manipulation article if possible. I don't know how to attach files - still kind of new on-line.
As for MMs holding down QDRX, they don't need to try so hard. There are a number of disgruntled shareholders who are disgustedly throwing the towel in - don't forget the extraordinary amount of shares floating around. It's harder for the MM to fix prices on large floats. What we need are some contracts.
Day-trading a penny stock with a large percentage spread can send you quickly to the poorhouse. It may be only about 3% now, without price movement, but wait until this stock has activity. I'll bet the spread goes over 5-6%. That, on top of an additional 5-6% each way with the broker, will soon equalize the few wins you can salvage with this type of investment.
The only way I know to hope to beat the game at this level is bet on a few well researched (by you) stocks that at least have a chance and wait for a good move, where you can make a three or four bagger - or better, if the fundamentals allow and there's no scam in sight, hold for longer term and hope that the mutual funds get interested. Try to buy them in the trough while they're still alive and at least have a prospect of surviving without having to sell equities or give the store away convertable bonds.
Easier said than done.
Bill |
