The scenario you outline is basically correct. The MM will short on the runup, expecting/hoping to cover lower. This usually works in saner times.
As for the 'halt' being ad-hoc.......
I'd say a run from 2 3/8 to 31 in one day is sufficient reason to cause NASDAQ, the SEC, the FBI, the CIA, (well you get my meaning), to investigate and let the dust settle a bit.
Or, let's everyone keep buying, run this puppy to maybe $150/share and bankrupt the MM's who tried to fulfill their obligations. Every day, we get a new 'poster boy' for the insane runup sweepstakes.
BTW, I am *NOT* on the MM's side at all. As nutty as the market has gotten, once again, maybe the powers that be are getting a little concerned. I don't blame them. |
