awesome post, i learned something here and appreciate the lesson, this is sincere, you bring up mm dynamics which a lot of people need to realize is not so cut and dried, there are rules but not all of them are reinforced. especially, "what makes a mm have to cover his short position", most people dont realize that short of announcing a dividend or going to nasdaq that the mm's dont have to cover at anytime, everyone thinks that the end of the month they have to close their books or that a name change works, this is not true. also, if an mm is short a stock, he can let it sit with another mm and drop off the bid and ask or event the lineup at anytime, he can resume his position at a later date. the mm's will help cover each other even thought there is some "no honor anong thieves", but for the most part they help each other. people need to realize that the total volume number like you pointed out can be very deceiving. the "real" volume is more like 1/2 of the number listed due to double prints and so forth like you said, and there is no way to determine, house transfers and mm exchanges, which also doesnt include after and before bell trading. there were a couple 700,000 share blocks go through on sgnc before the bell a week ago that will never show up on the days volume, so therefore the positioning takes place and no volume is recorded.
macker |
