I have contended for about two months now that there is a "posibility" of the dynamics we are use to, changing!If the role of the MM is changed, it seems that it will have an affect on other things.
It is at least an interesting time.
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It seems that good news (sometimes GREAT news) is having less of an affect than it did a few months ago.
Is it possible that the runs we HAVE SEEN after the release of GREAT NEWS, have been the result of MM manipulation. Not the result of actual supply and demand for a stock.
If this is the case, then I think a market run completely by supply and demand will have us trying to understand hedge funds in the near future.
I do not look forward to a day when I own a stock that there is NO market for. Or try to buy a stock that there is NO seller for. I am glad we have liquidity in the market.
I do NOT like the way it is done now (read- it is not perfect). Though it seems the way it is, we have learned to co-exist with the MM's in a way that is profitable for the MM's and for ourselves.
I am not looking forward to having to make a a paradigm shift to understand the market. I am just starting to get to a place where the pieces are comming together. Now it seems that the pieces are changing. I hope the next big lesson I learn is not... OK, forget everything you have learned over the last 18 months. Get your wallet out, get ready to pay some more dues. The tuition starts over today.
Just some thoughts. I do think it might be a time for caution. Even though, the rules may change. It will still be a market the reacts to the same basic things as always.
FEAR vs. GREED!
PAUL
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But godliness with contentment is great gain.
For we brought nothing into this world, and it is certain we can carry nothing out.