RE: next week another whopper drawdown"MM's are bringing this baby down just to shoot it back up again"
lol I love how people always say "the MM's this" or "the MM's that"......my guesss is taht 99% of the people who say that are repeating it after reading it from another cluelss poster on the boards, and have no clue as to exactly what market maker's are, how they do their job, and what they can and cannot do.
A few facts......market makers main job is to ensure liquidity. It does this by quoting a bid and and ask at all times. Generally, for the high volume stocks (of which HNU certainly is) they are not needed, and do not do anything. They do NOT decide the price of a stock, and they don't have much power to move the stock (even if they wanted too)....especially in an ETF like HNU that has an exact and measurable value, based on the price of the underlying (gas, in this case)
So could an MM quote a lower price on HNU then is inappropriate based on the price of NG? They could, but they wouldn't.....after all, if the MM's WERE able to bring the price of HNU lower then it should be based on the price of NG, then in the space of a few seconds, this arb oppourtunity would be picked up on by other traders, and would be neutralized in a hurry....the net result is that the MM's would be selling their securities for less then they're worth, and they would lose money. These companies are not in the businss of losing money.
For example, let's say that the current NG price means that HNU has an intrinsic value of $5.......an MM could, if they wnated, quote a price of $4.97, but that would be detected immediately (most large trading hosues have com,puter programs that are designed to instantly find these situations, and to trade on them immediate.....usually in a fraction of a second) and corrected, with the end result that the MM's are selling their $5 security for $4.97....it doesn't happen.
If you were referring to MM's for the acutal commodity, that is also inaccurate. Commodities don't have MM's.....NG trades several billion dollars a day......hardly the need to ensure liquidity there.
To simply blame any movement of a stock on "MM's" or any other economic bogeymen is more often then not simply the reasoning made by someone who has no clue what they're talking about....
lol it's also very consistant with losing money....I rarely hear anyone complain about MM's when they MAKE money.....but if they LOSE money then it's much easier to blame the MM's then face the truth....they simply made a bad investment.