Ask sitting to bully retail If you put a flea ins

Ask sitting to bully retail

If you put a flea inside of a jar and cover it with a lid, the flea will try to jump out but hit the lid. After a while the flea gets conditioned to believe that the lid is as high as it can jump. If you remove the lid, the flea will only jump as high as the lid and remain trapped in the jar.

Ask sitting is meant to fatigue the bullish retail investor. It stuns the upward rally and makes the retail investor reluctant to hit ask. Since the vast majority of investors chase momentum, this discourages inflow of capital to the stock and kills momentum. Then the insitutional guys start whacking the bid to make the price go lower. Retail investors will continue to attempt to defend the bid but in penny land they usually end up running out of money before a catalyst saves them, and finally dump their shares on a panic sell. The institutional investors sit way below on bid like sharks circling and scoop up the cheap shares.

Citadel just appeared today on another stock that I am playing off the lows called MPIX. I've been playing that stock since May and out of the blue they show up as the lowest ask right when investors started to mount a rally today.

This tactic is not unique to Citadel, it is a tactic used by all the big boys. Start observing the L2's of any penny stock that is active and you will see it happen over, and over, and over.