CMOZ... consolidated and ready... MM activity today...
All I say is that today was classic text book Market Maker activity... you first have to understand that a MM knows almost everything that is going on with the play (they call the company, promoters and other MM to get a sense of activity) and from this "sense of activity" they know when to push the price and when not to push the price... from what I understand, very few are short in this stock for two reasons, 1) only about 11 million outstanding shares and 2) there is a steady stream of information circling about the company working on several acquistions and a major financing... these two reasons act to keep the MMs in check... there are also a lot of investors still buying as was evident from the push upwards in the early morning... once the price moved up, the MMs assessed the buying pressure (it was only light but nevertheless still there), they held the price in a narrow holding pattern above $2.60 and shorted stock against their retail trade (not too much but just enough)... when the buying slowed while investors were at lunch (early afternoon), the MMs removed the bids and loaded up the offers and very quickly the price rocketed down to $2.06... the net effect was that this shook out about 300,000 shares (allowing them to cover their short, net about $0.50 profit)... however, other investors waiting for this quick pull-back jumped on the buy and drove the price back up to $2.50... this exact same pattern has occurred for the last three days, with one difference, the volume has dropped (1,448,400 then 1,118,900 then today 709,400)... to me this indicates the float has thinned and most of the stock has turned into firm hands within this price range.... so, the bottom line is everyday that passes, the thinner and thinner the stock will get due to consolidation, then when the company releases more news, there will likely be a strong upward movement in price because of the reduced selling pressure and then the MMs will play their games again, however, hopefully with each news release the price will remain at a higher base price each time... of course, how high the price goes depends on how good the news is... |
