Tuesday, June 27, 2006

Market Maker Manipulation At Its Finest

If you are down on some of your holdings, you are not alone. Several stocks listed here and elsewhere (we feel) are worth substantially more than what the market makers are putting a price on today. Recent corporate earning are going through the roof and nobody seems to be listening. I guess in reality, no one is really willing to sit in a buy huge positions by sitting on the Bid in the face of the Fed's actions this Thursday.

Therefore, market makers generally sit on the bids and if they continually get hit, they drop and keep dropping. Eventually, someone will step in and put a stop to this sheer manipulation of share prices if good stocks get too absurdly low. Afterall, if you had to sell your house in a day or two, what price do you think you would get? Top dollar? Probably not. We are all waiting for the nonsense to stop and sensibility to return.