If a market maker can predict what you are going to do then he can profit from it. I call them market manipulator's ( MM's}, or guru's. They do this with outright lies, rumors, conspiracy, and the creation of volatility. Remember not to long ago, I forgot the name of the guru, he was advocating a strong buy on Micron Tech. (MU) The whole time he was shorting the stock. He made money on the upswing, and even more money as it tumbled. Perhaps someone here at this thread will remember the guru's name. Recently a rumor was created that George Sorros a billion dollar guru was buying ZITL the stock ran up about 35 points, the next day the rumor was discovered false and the stock tumbled 35 points. The MM's made 70 points in two days. Suppose I'm a market maker, and i'm going to trash a stock in two days i'm going to downgrade the stock from a strong buy to a sell I meet you for lunch. you are also a MM I disclose to you my plans and you short the stock, but before you do short it you tell some of your other MM friends. All I ask is that the favor be returned to me at a later time.
By the way I'll bet those MM's were in dark cozy little place having steak, and lobster tails, then they laughed themselves silly all the way to the bank.
good luck c-ya! |
