medium · Volume Spread Analysis climaxes-tests-springs-upthrusts

A market-maker is marking prices down rapidly at the open on 'bad news.'

If the background is already strong, what is the most likely professional tactic being used?

  1. A shake-out designed to acquire cheap stock from panicking weak holders.
  2. They are marking prices down to prevent anyone from trading that day.
  3. A genuine markdown because they believe the news will destroy the company.
  4. They are 'averaging down' on their short positions to minimize losses.

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