No, you are a beginner. I suppose MM's were "making a market" in MZON in the mid-30's Wednesday afternoon, when their inventories were depleted, holding it back for 15 minutes before finally capitulating and being forced to cover? TSCO was a prime example. He was forced to cover, jumped from the ask to the bid, and the stock took off to 59. Market Makers work for investment banks, and their sole purpose is to create profits for their respective employers. No successful market maker plays the spread in high-volume, fast-moving stocks such as MZON Wednesday and SKYM Thursday; they take a position and use all leverage and advantage in their possession in order to bolster it.
If you held a short in the #1 Percentage Gainer and #2 Volume Leader on the Nasdaq over a holiday week-end, what more can I say? No astute trader in his right mind would have ever taken such a foolish, low-percentage position - no matter the outcome. Your potential reward, if proven correct, is perhaps 3 or 4 sticks; your potential risk if proven wrong is anywhere from 10 to 30. Your naive post betrays your ignorance and inexperience. |
