how market makers manipulate

Discussion in 'Trading' started by hitman4gk, Feb 4, 2007.

  1. example,a stock is up 2 bucks pre-market on good earnigs and guidence then it sells off over a point at the open and quickly recovers and even goes up another point.i realize some holder take profits at the bell but how and why would a market maker dump shares at the open to lower the price. lets say he sells 10,000 shares and knocks the stock down a point.would'nt buying it back be sort of a wash? i realize this is dome mostly on thily traded stocks(under 500k per day)///am i being paranoid?
    also,hoe about stops that get taken out?