RE: Narrow spread10 Aug 2018 03:44
Starb- MM's make a market and I believe and understand that mm's have been know to short their own shares, not only to make a market but also to benefit members of certain circles! At the moment there are some weird games going on and agree that today was a great opportunity for buying. So ask yourself this, why are mm's letting the share go down despite the fact that more buys than sells? Even with Verges selling, there is more than enough buying to at least keep the price trading sideways (not down), but the mm's know that the share price will be going up very shortly! How do they know this? Well, mm"s are there to make markets and make money on buys and sells, on the share price going up or going down and they can create a market by both raising and in this case lowering the share price (pretty much at will). On a share like Angus, people will buy and sell in both directions and if the share price goes up, it attracts even more trades (such as Wed), so why lower the price? Well, simply because it suits them and certain people and when they feel like it, they will raise the price or if there is overwhelming buying and then they just have to. At this point, they are happy to take your shares at a cheap price and pass them on, so I have my shares and will be buying more as and when I can. If we all do this, THEN THEY WILL HAVE TO RAISE THE SP! I think they are feeling pressure now and several people reported NT today, so the mm's are possibly running low on shares (filling big orders) and there were even a couple of uncrossed trades today! I hope my thoughts have answered tour question. Thank you DYOR!