I strongly believe the price impact of news as determined by the specialist/MM depends on their position in the stock, whether long or short. I believe the specialist holds a big short position in DRL. DRL just made some added statement about concern of refinancing, which was already a major reason for the stock's recent big weakness in price. Today, the specialist unilaterally determined for the stock to open about an additional 13% down.
agreed as well...i'm watching a few stocks that seem to be getting bought up on their overextended dips...interesting for sure.
That's Wall Street. Same as how does Goldman get away being on both sides of the NYSE/ARCA deal, all while having a position in both.
I just started the following thread: "Massive class action for traders: Milberg Weiss?" http://www.elitetrader.com/vb/showthread.php?s=&threadid=88771