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OCZ Technology Group AŞ Message Board

  • atari26oo atari26oo Sep 5, 2012 4:06 PM Flag

    Do you think the MMs know something ahead and want it cheap? Price movement is very stranged.

    any idea?

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    • the only thing they could know that retail don't know is who will be in attendance to this conference. they might also know questions to be asked of ryan if he is fielding any. other then that they know just as much as anyone else does. unless they have figured out just how much ocz will miss by, but earnings are to far off to short on that.

      • 1 Reply to pipster1234
      • You guys have bizarre ideas about market makers. They're just bookies basically, taking bets on both sides, trying to balance the 2 sides so they make a profit either way. Your idea that they sit around and decide which way to move stocks (or that they have the power to really) and dream of ways to screw over retail investors is paranoid and ill informed.

        Have you sat on an institutional trading desk actually making a market for securities? Guess what? I have. I have a pretty good idea what happens there, and it's not like what you guys think. You have watched way too many movies and Hollywood interpretations. Market makers just gauge supply and demand and set a spread based on their certainty. They make the money on the spread and the volume, not on the direction. They hate to take large positions on their books that aren't offset, because they can lose money that way - and they generally do not lose money from market making operations.

        If there's anyone screwing with prices and manipulating them, it's hedge funds, but not on the scale you guys envision. Like Cramer mentions in that video (think it's on youtube), if the hedgies wanted in on blackberry cheap but knew there was good news coming (or just liked the stock), they'd allocate some money to knocking it down in the SSF market before the equity market opened. Then when people panicked and sold their shares, they'd gobble them up, and the company would probably close higher on the day - at that point they'd want it to go up, not down. They do play on the idea that a stock that is moving means that "someone knows something" - which is usually not the case. The machines also do cause a lot of volatility with the search and destroy algorithms. They tend to exaggerate volatility in one direction or another, but they are entirely emotionless and scan the entire universe of securities all the time.

        Lastly, there are no friends on wall st outside your own company. You trust no one. If you're a hedgie and you're caught on the wrong side of the trade and want out badly, the last thing you do is tell anyone. As soon as they sense your desperation, the market moves away from you as people figure it out. You don't, as some of you guys seem to think, call your buddies the mm's and ask them politely to move the stock where you want it to go to close out your position. Lol. All you'd be doing is letting them know there is a lot of supply or demand for a given stock, and they'd probably just frontrun you. So it simply doesn't happen, because no one managing that much money is stupid enough to think they should share more info than they have to with anyone else in the industry.

        OCZ is volatile because it's a small cap stock with no dividend support and an uncertain future, so it acts bipolar. That's all. Nothing more sinister than that.

        Sentiment: Strong Buy