Specialist manipulation: to what extent?

Discussion in 'Trading' started by Option Trader, Nov 14, 2006.

How much control does the specialist have over the market?

  1. The specialist has enough ways to "influence" the market whatever direction he wants, regardless of

    3 vote(s)
  2. The specialist's influence is more limited.

    7 vote(s)
  1. QQQQ at $44.00 is actually what prompted this thread.

    E.g., if 90% of traders were bearish, but the specialist wants to unload his stuff, does he have enough ideas up his sleeve to keep the price up?
  2. qqqq is a nasdaq stock, there's no specialist only market makers.
  3. ...and is not controlled by mm's either.
  4. Thanks for the info.

    As per the thread, I didn't mean QQQQ as much as I meant specialist.
  5. It is my understanding that QQQQ, as an ETF, is not a stock per se. It moves up or down only according to the moves of the 100 stocks this ETF is made of.
  6. I am remembering better now, as I had once checked into this.
    My understanding is that hypothetically it's a free agent, only there are arbitragers who do or would fill the gaps if there is a deviation.

    In reality, the QQQQ isssue is moot, because a specialist (or actually MM) is the one who controls the underlying.