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Strategies & Market Trends : Dividend investing for retirement

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To: Ditchdigger who wrote (28074)10/20/2017 2:59:32 PM
From: robert b furman  Read Replies (2) of 34328
 
You bet.

Often one sees a block trade at a top or a bottom - then a reversal.

The market maker has the complete book of orders.

If there is a big stop and the MM wants to reach up or down to get it, he sells short (only he can create shares- supposedly) on a low volume day it is easy to manipulate the price.

Magically he provides liquidity and buys up the stop order.

I think the biggest display of that kind of trade is as the close settles out.

All day there has never been a big block and price goes sideways - then just at the close a block clears through.

The Market Maker was accumulating for an institutional buyer. He'll make his nickel on the average and the institutional buyer gets his position filled with out up bidding the market .

It is all about who you know and that's why seats cost a lot of money and trading houses have a block desk.

All just my impression from having done this a while.

Bob
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