Response: Stop Effects
It is my personal opinion that no one individual carries any effect on the market in general, and probably very little on any specific stock. We were given an estimate once that there were probably 1500 folks that follow this thread, although there was a large possible margin of error. Since about 300 people have bookmarked Jenna, and maybe half that for me (most of which are likely a subset of hers), and if there are twice as many who follow on a regular basis, we are still talking about a very small group.
Unless you are all mad at me, then its huge.
Yes, online brokers are for the most part connected to offline brokerages, or at least have third party houses that handle the floor trading. Essentially, though, the order is sent electronically and queued for the mm's to see in order of execution priority. A lot of it is nearly automatic, bringing up the orders to fill in the order they were received and matching All or None, etc with complimentary orders to buy or sell. A mm would have to have a prtty slow day to mess around with that Even on NASDAQ, they are more concerned about the SOES pirates scalping them if they go to the restroom than a few thousand shares. They could, and some probably do, but they risk being shunned by other foor traders, especially the brokersages who have large clients that get pissed.
At any rate, A year ago I was a little concerned it that was a possibility so ran a little test posting limit entries and exit stops and stock recommendations for specific stocks. I then monitored changes in bid/ask spreads and fund buys intraday and next day. I was actually more concerned about the mutual fund staffs than the mm's, due to the nature of the beast. I could not coorelate any effects. I tend to write it off as coincidence now. Come to think of it, I started that study after some mm grabbed my shares at a reasonable stop...
lastshadow
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