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With all due respect, your understanding is seriously flawed. A market maker may maintain an inventory in a stock, but that does not have much of an effect on the daily ebb and flow of prices. Without getting into a discussion of if, how, and when a BB MM manipulates a stock, just look at it from the firm's trader's viewpoint. He comes in to work every morning "flat", meaning he has no short or long position in the account he is trading. If he is short at the end of the day, it's not because of news or anything else other than the fact that he is betting that the stock will go down. Most traders don't like to make overnight bets; one screw-up and they can get fired. They make their money on the spread. The faster the stock moves, the higher the volume, the better they like it, as a general rule. They take the money away from the public, not each other. |
