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Non-Tech : Market Makers - What They Do and How They Do It

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To: jjs_ynot who wrote (65)1/20/1999 6:40:00 PM
From: Rick Faurot  Read Replies (1) of 429
 
Don't know if this has been mentioned on this thread, but new traders should be aware how MMs will use INCA to cover moves. A common ploy is when you suddenly see INCA show up on the ask with 100(10k) showing. This is almost always a ruse by the ax to force the stock down so he can buy it cheaper. The same tactic is used in reverse when you see INCA showing 100 on the bid. Here the MM wants to run the stock up in a "blowoff rally" and then short the heck out of it at the fake top. So beware of those giant INCA offers and asks. MM games in progress!!

RickF
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