Market Makers STUPID?

A

axeman

Are MM's stupid enough to show large size
on the bid?

Ive been watching a stock that im in, and this one MM
keeps showing size on the bid, and is in fact really buying.

He gets hits and just refills. I dont get it.

Is this a case where an MM is working an order for
someone else and just doesnt give a shit if he shows
his hand and doesnt get the client a great price?

Traders just keep leaning on him.

Any ideas?


peace

axeman
 
Maybe he has Size for sale!

Believe it or not there are BUY side traders that request him to be there for SIZE OUT LOUD for other reasons.
 
Do you have any examples of these reasons?

If he is in fact a big seller, and is supporting the stock at
this price and driving it up, it must mean he believes that
the number of shares he eats will be SMALL compared
to the number of shares he will be able to dump at a higher
price by "scaring" the price up, then unloading his OTHER
shares AND the shares he ate at the lower price.


peace

axeman



Quote from Ebo:

Maybe he has Size for sale!

Believe it or not there are BUY side traders that request him to be there for SIZE OUT LOUD for other reasons.
More...
 
Quote from axeman:

Are MM's stupid enough to show large size
on the bid?

Ive been watching a stock that im in, and this one MM
keeps showing size on the bid, and is in fact really buying.

He gets hits and just refills. I dont get it.

Is this a case where an MM is working an order for
someone else and just doesnt give a shit if he shows
his hand and doesnt get the client a great price?

Traders just keep leaning on him.

Any ideas?


peace
axeman
More...


It's called advertising.

Or he needs to control certain trading range to screw traders or get some instititional blocks printed.
 
Quote from axeman:

Are MM's stupid enough to show large size
on the bid?

Ive been watching a stock that im in, and this one MM
keeps showing size on the bid, and is in fact really buying.

He gets hits and just refills. I dont get it.

Is this a case where an MM is working an order for
someone else and just doesnt give a shit if he shows
his hand and doesnt get the client a great price?

Traders just keep leaning on him.

Any ideas?


peace

axeman
More...

If he's buying for an institution he may have been told to show the size.
 
Why would an institution want to show size?
Every little leach day trader will step in front and they
will get a worse price. :confused:

peace

axeman

Quote from waggie945:

Cut the conspiracy theory BS.

The MM could simply be showing a bid for an institution.
No big deal.

:)
More...
 
The mere fact that we're debating if someone is buying strongly or trying to fake strength tells you not to over analyze it. Without seeing the market depth, there's no telling what's real and what's a bluff. Sort of like playing poker.
 
Unless you see the MM chasing stock up, there's nothing wrong with showing size. How else is a size seller going to know there's a buyer?

If you frontrun the guy, and he doesnt raise his bid, you lose and he gets his stock too. :p
 
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