庄稼是做市商,提供场所供机构和基金对赌. For NYSE, it is one specialist for each stock; for NASDAQ, each stock has a lot of market makers.
-wang-lao-wu(钻石王老五);
2008-5-10(#34332@43)
Market maker is supposed to buy where there is no buyer, and sell where there is no seller. They are regulated by SEC, and cannot do things too weird.
-wang-lao-wu(钻石王老五);
2008-5-10(#34333@43)
Fund managers are bigger fish in comparison to us individual investors. They are not market makers.
-wang-lao-wu(钻石王老五);
2008-5-10(#34334@43)
For bigger stocks such as AAPL, MSFT, GOOG, and NVDA, there are a lot of market makers. The most famous ones are Goldman Sachs, JP Morgan, ...
-wang-lao-wu(钻石王老五);
2008-5-10(#34335@43)
ENER has only about 30 M stcoks. But 11 M had been short sold before the earning report. ENER beat the street by $.31....When the numbers came out, it was a big positive surprise. Most funds will think this way: buy, buy, buy, . Let's squeeze those shorts. Those shorts knew they were wrong, so were forced to buy back the stock they short sold. In such a case, everybody was buying, both shorts and longs! The relationship between demand and supply has been completely distorted.
-wang-lao-wu(钻石王老五);
2008-5-10{362}(#34337@43)
我觉得mm有时也会操纵市场,比如option market假设有10万个put option 这个月到期,只有100个call option,如果股价大跌的话,MM要赔好多钱的,这个时候,mm 可能就要在 OE day 以前猛拉股价,让这些 Put option expire worthless.
-tala(想和mm穿一条裤子);
2008-5-10{171}(#34336@43)
Are you saying that 9900 put option was sold by 大户?I still believe that mm is the option writer for that 9900 put option, anyway, it is her job to create market
-tala(想和mm穿一条裤子);
2008-5-10(#34346@43)
No matter you are a market maker or a big institution, the correct operation is to short sell the stock instead of buying up to protect your short put positions.
-wang-lao-wu(钻石王老五);
2008-5-10(#34352@43)
The core point is there are many hands there. When you are down, the correct thing to do is hedging, not to fighting against the trend. 当然啦,散户常常往下平摊。
-wang-lao-wu(钻石王老五);
2008-5-10(#34353@43)
In the case of option expiration you mentioned, the market maker will not defend their short put positions. Instead, they will short sell stocks! 庄稼不会跟潮流对著干的。
-wang-lao-wu(钻石王老五);
2008-5-10(#34343@43)
For smaller stocks such as SOHU, if you want to move it up $1 before the OE, it is OK. If you want to move up by $3-4 in last hour without no news, the market makers will push you down.
-wang-lao-wu(钻石王老五);
2008-5-10(#34348@43)
There are so many big players in this market. Even for a small stock such as SOHU, no big player can manipulate the market without paying a big price. Now it is different from Jesse Livermore's time.
-wang-lao-wu(钻石王老五);
2008-5-10(#34355@43)
Gold will go to 1200. This is a pre-set goal. No matter how volatile the market is, the investors will reach to that goal. Just as how oil has been traded to $100 and above
-wang-lao-wu(钻石王老五);
2008-5-10(#34358@43)