I know I'm going to get flamed, but I think this needs to be said.
I'm no apologist for the MM's. I've traded and know all about the backing away , and the rest of the games played daily.
However, what do you expect a business to do when faced with the INSANITY presented by the current crop of 'daytraders'?
The moves in some of these IPO's and 'net air balloons defy any rationality. How do you make a fair market in lunacy? You don't.
Most of these stocks have little or NO SUPPLY. Jim Cramer (thestreet.com) has dealt with this issue many times. The surge of buying buy the mob, uh, masses of dt's force the MM's to get short. How would you like to be forced short AMZN or EBAY and watch it levitate 25 points by noon? Sounds like fun to me.
Yep, I know that's their job, obligation, whatever. But anything overdone get's old real fast. So in the old days they took the phone off the hook. Now they shut down auto executions, and otherwise find ways to 'pull the plug' when large losses loom.
MM = Market Maker, not Masochistic Moron ;}
The trading in some of these names has gotten so deranged, that it's really a buyer (shorter) beware for anyone trading them. If you're not ready to lose 10 points, with a smile, you shouldn't be typing those symbols in your execution box. This is PURE GAMBLING folks, and sometimes the jockey falls off the horse at the start. Rip up the tickets and move on.
That said, more power to Steve Yamner and crew for going to bat for his clients. But I'm sure there's a limit to what can be done when you're trading these accidents waiting to happen. |
