More thoughts on the MM's. Use 'em; Abuse 'em.
Okay, now let's think about this using some assumptions. First of all this stock has run, in a week, from 3/32 bid to somewhere up in the 3/4 range and now back down to the 3/8 level. Chances are good that some of the MM's in this stock got short at levels from 1/4 all the way to 7/8. I would guess that the majority of the stock IF THERE IS A SHORT was shorted at 3/8 to maybe 1/2 or a little higher. .. ...
There are only six market makers. And, it's mostly wholesale MM's who I have personally seen be significant short sellers in many issues at various times. .. (However, I have no evidence that there IS a short in this issue)
Okay, now, Mr. Hydra has an order in to buy at $.50. If the MM's ARE short at this level or a little higher or a little lower do you really think they are going to drop the offer to $.50 and be FORCED to fill him. NO! Do you think one of these MM's (Gosh, I wonder if they "talk amongst themselves". .. hmmmm ?) is going to step the bid up to 7/16 in order to assist Mr. Hydra get filled? No! If Mr. Hydra is going to get filled they want him filled at higher prices so they can "average their short UP". By moving the bid to 7/16 the MM's not only see Mr. Hydra have a chance to get filled at lower prices, but, they lose the opportunity to "average up" AND the stock is showing strength. If they are, in fact, short, they don't want to see the stock rocket upwards, they want to cover at the lower price. (GEE, that's ANOTHER reason the MM's wouldn't want to move up the bid. THEY would be competing at higher prices with Mr. Hydra for the very stock they NEED and Mr. Hydra WANTS. If, in fact they are short).
So, what's the solution. FIND A BROKER WHO'S TRADING DEPARTMENT WILL WORK "WITH" YOU FOR EXECUTION OF YOUR TRADES!!!
Again, these are just my humble thoughts and, of course, I have no way of knowing if the MM's are short and/or long. This discussion is conjecture only and a discussion of trading techniques for OTC BB stocks which trade ENTIRELY differently than high cap, more liquid issues. .. .
End of soapbox ranting and raving. <s>..
Comments welcomed. . ..Did I miss something?
CLiNT
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