RE: Warrants10 Sep 2018 22:07
YTSS - simply because the market makers do not have to behave in the way that you think they might have to - they have arbitrary control over the share price and can quite happily sell more shares than they buy over hour, day or week long time periods.
Very often you see this when buying is strong - the price is walked up quite quickly in the morning whilst there is buying enthusiasm and then walked down in the afternoon when they actually want to be buying the shares back, and at a lower price than they got for them in the morning. They know that people are more likely to buy in the morning and sell in the afternoon, because they feed off those things called day traders (though traders is too good a word for them), who cannot bear to invest in a stock for more than a single day.
On a different timescale they also do not obligate themselves to have to buy as many shares over the course of the day as they have sold to PI's, especially if they know that there is the chance of picking up cheaper shares in the next few days, for example if they think there might be bad news that can be strung out, or a warrants holder who is handing over their warrants to get cash for shares they don't yet own, but wants to make an immediate profit on. Both could be said to apply here.
If you wish to see how the nett trading balance can play out over many days have a look at this:- https://www.thebushveldperspective.com/blog/public-blog-1/post/18th-aug-flash-short-update-week-8-177
That shows the balance of trades after the infamous 18 Aug 2017 flash short which was soundly seen off by those here. You will notice that in some of the trading days following the short there was an excess of up to 1Million more Buys than Sells, and still the SP fell (eg look at the 4th of September.)
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