When there are pockets of supply and demand (bid-ask), the market maker, prop desks short, institutions accumulating are all working to move the bid-ask down temporarily. The key to understanding that it is a move away from the true bid-ask is to see the 100 lots and 200 lots. They move a 100 or 200 share lot to as close to the last price as possible or they move it down further if there is a pocket in the bid. The lower they can move the ask down, it means they can position the bid down as well. Here's the point. It's temporary and it is an effort to slow down momentum, and it is an effort to convince retailers to not scrutinize this strategy and accept that bid-ask as legitimate. Pay attention and you won't be fooled into selling positions during these tactics. Quickly, you'll notice the true bid-ask comes in again. We see it pre-trade and intraday. Take advantage of these tactics on low volume. We're going to go through the 200MDA, and with sustained covering, we're heading to a golden cross near-term. VVUS should be looking at $10 shortly based on poor numbers today. NO MARKETING IN THIS WORLD IS TO SAIL ADRIFT.
Your right they are moving the bid ask around but it is because there is a imbalance on the open market makers have to all these orders that get executed at the open. The reason for that is that the broker dealers guarantee their clients minimum sales. For example I was a Nasdaq MM for Schwab we had to guarantee each client up to 3k shares at the open and on any bid/ask. It's what they do to attract client accounts. So when we had a stock with news like this i would have to sell 1k to every buyer on the open or if bad news buy 1k shares from all sellers. The promise of liquidity was how they got retail accounts. With that said. I could find myself long or short 250k shares of a stock on the open. So I would want to move the bid or ask up or down and exaggerate the move so I could by or sell the stock and make a profit. To Do that I would offer the other mallet makers 100k shares on their bid or offer they have to buy 100 share min and then move their price. The other thing we do is put a anonomous sell or buy out on instanet only show 100 shares but it refreshes for as many as we have behind it like 10 or 50k shares. Since it shows 100 people pick it off 100 shares at a time when each lot of a 100 is sold it refreshes. If that buy sell is above or bellow the market the other market makers know to adjust their markets. And I try to get short or long the stock before my orders. Essentially I can legally front run them since the market is not open yet.
Sentiment: Strong Buy
The one thing I want to add is that if the stock opens down or up in first print it will usually move that direction the rest or day. So if we open up it will be a green day it is like reading the tea leaves and alot of day traders know that so after the first print the Martel maker lets the market move in the opposite direction so they can sell or buy the stock that they just sold or bought from you and make money after that trade so get try to manipulate it in the opposite direct for next 15 minutes then it will resume the move it had on open.