Excellent post on mm's price controls and behavior
Post# of 11040
(Total Views: 301)
Posted On: 07/01/2021 2:19:13 PM
Excellent post on mm's price controls and behavior
jseps0036 Thursday, 07/01/21 12:56:04 PM
Re: harmanepa post# 50575 0
Post #
50576
of 50576
Market makers that trade amongst each other to keep control over the price. Although there does not appear to be any need to “control” price at the moment, they still have an obligation to “make a market” and move price around a bit. There is also a possibility that they are trying to tag price points that will alert buyers and sellers. Basically, in quiet times like these, there will be occasional psychological tests to see the sentiment. Right now, there are not a lot of eyes on this ticker, so liquidity is essentially non existent.
All that being said, a market maker will almost always be on the opposite side of your trade…not out of competition or malice, but because they are obligated to buy and sell shares on the bid and ask. So whenever you see a large price increase, market makers will inevitably be establishing a short position by continuously averaging up because they are obligated to provide shares to buyers hitting the ask. Then when the buying pressure dries up and the inventory of shares is depleted, the price gets progressively marked down to encourage selling and they then cover their short positions and resupply their inventory of shares. Once this is done, they have a net long position and need to wait for an opportunity to entice buyers and mark the price up. This happens over and over again on nearly every time frame, but with OTC, you pretty much have to use the daily chart or higher as the control chart.
CRGP is firmly in an established uptrend and has been holding the trend line despite SSM waking away. That can only occur on purpose. Some entity is supporting price, which is good. There has been very little volume the last few days, which suggests that nobody is selling and the market makers have accumulated their position for the next leg, which I firmly believe will be a substantial increase in price.
https://investorshub.advfn.com/boards/replies...=164702558
$13
$CRGP
jseps0036 Thursday, 07/01/21 12:56:04 PM
Re: harmanepa post# 50575 0
Post #
50576
of 50576
Market makers that trade amongst each other to keep control over the price. Although there does not appear to be any need to “control” price at the moment, they still have an obligation to “make a market” and move price around a bit. There is also a possibility that they are trying to tag price points that will alert buyers and sellers. Basically, in quiet times like these, there will be occasional psychological tests to see the sentiment. Right now, there are not a lot of eyes on this ticker, so liquidity is essentially non existent.
All that being said, a market maker will almost always be on the opposite side of your trade…not out of competition or malice, but because they are obligated to buy and sell shares on the bid and ask. So whenever you see a large price increase, market makers will inevitably be establishing a short position by continuously averaging up because they are obligated to provide shares to buyers hitting the ask. Then when the buying pressure dries up and the inventory of shares is depleted, the price gets progressively marked down to encourage selling and they then cover their short positions and resupply their inventory of shares. Once this is done, they have a net long position and need to wait for an opportunity to entice buyers and mark the price up. This happens over and over again on nearly every time frame, but with OTC, you pretty much have to use the daily chart or higher as the control chart.
CRGP is firmly in an established uptrend and has been holding the trend line despite SSM waking away. That can only occur on purpose. Some entity is supporting price, which is good. There has been very little volume the last few days, which suggests that nobody is selling and the market makers have accumulated their position for the next leg, which I firmly believe will be a substantial increase in price.
https://investorshub.advfn.com/boards/replies...=164702558
$13
$CRGP
(0)
(0)Calissio Resources Group, Inc. (CRGP) Stock Research Links
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Quote:
If the broker-dealer fails to deliver for 13 days, the regulation imposes a “close out” duty to purchase and deliver securities “of like kind and quantity.”
https://www.bloomberg.com/opinion/articles/20...ify%20wall
https://www.scotusblog.com/case-files/cases/m...v-manning/