I don't think the MMs intentionally take a short position, I think they are driven to it by the trades coming in. Their job is to make a market in a stock. If they get more buys then sells, they are forced short. When looking at the tick on the rise to 3.00, it looked to me that they were driven short by the continuous buying. When there was any letup, they dropped the price a little and were hit by more buyers. It didn't seem to me they could get the shares to balance the books. Thus they are forced to follow the market, going short until the volume slows. The euphoria seemed to drop out of the stock when they held it below 3.00, and on the downswing, they got lots of shares at cheaper prices. The clue to me was their holding just under 3.00 despite mostly buying. The other clue was after they had dropped the price, they spiked down twice to pick up cheaper shares to cover shorts.
What do I think is going to happen next? I wish I knew. I don't know the MMs supply of stock or their average price. If they are still short, which I doubt due to the late day rally, they could continue the rundown in price. If they are even or ahead, and there is a medicore PR, they will probably follow the trend and try to keep the books balanced. Raise and lower the price as demand arises. If it is a blockbuster PR, and tons of buying, they will again be forced short and continue the game. I think that since most BB stocks are crap, they aren't worried. If WINR meets its promise with some great PRs( like great financials and opening the mall) and tons of buying I would expect a swift move upward followed by the retracement to about 50% of the move.
We will soon see. I'll bet they read this thread. They are probably either thinking I'm full of crap or what they can now do to change the pattern and foil the public.
Gene
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