The dance of the Market MakersThis is my story about buying Dream Office shares today. Market Maker madness!
I had about 6,000 shares in bids in at 15.34 & 15.35 around 1PM and the market makers as they are on both sides of the bid and ask, had their fake bids & asks at around 15.45. They brought the stock down to 15.35 where I was on the bid but they would not fill me. They just kept bidding up the stock 2 pennies, then bringing the stock down where I was on the bid again. 1 hour of this and I'm getting p1ssed off! Frustrated as I wasn't getting filled, I moved my bids down to 15.32 just to see what would happen. Sure enough, they brought the stock down to 15.32 within 5 minutes. Again they wouldn't hit me, so I moved my bid up and dropped it on at 15.34 and 15.35 getting a partial fill. Immediately the stock popped back up to 15.37. At that point, I moved my bids back to 15.32. It was quite comical, once I had about 2,000 shares left to be filled, they just hammered my bids at 15.32 & began working the stock back into the high 15.20s. They always make it look like there is real action but it's not, it's just some @$$clown bot providing liquidity.
My conclusion is that the MM's don't actually want to sell you shares. They will use your bids as support and dance around. Selling themselves shares back & forth. Also if there is no "real bids" on the bid, they will just bring the price down to where there is real bid support.