<<If MM's are trying to cover doesnt that mean that the price should go up?; ie buying back the shares they sold.>>
No, when MMs cover they can trade back and forth at their own price, somewhere between the bid and the ask. They can even buy from each other at the bid, as a professional courtesy. Of course, they can then lower the bid to make it appear as if it is a real sale.
But it is like a shell game, they can trade back and forth all they want, but the only covering that counts are real shares from real buyers, and they are not getting many at all. When will that happen? I don't know, but look at all the announcements that have been made in the last two weeks: NMSS, Oracle, Digitcom Net, etc. Can the financials be far behind?
Also, the end of the month is next week and they always bring the BB's down at the end of the month, to close out their books for the month. They are walking down just about all BB stocks. They are getting real sales in many of those, but with us we have been through this so often that only strong hands remain.
Once financials come out, and the filings, etc, the big money can start rolling in, and these little covering games won't amount to a hill of beans. |
