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MARKET MAKERS SHAKEDOWN
Message flagged
Thursday, June 30, 2011 2:38 PM
Message body
More and more investors are winning the game nowadays despite all bashers that float through the Internet that has become part of the game. Floor traders of market makers often watch CNBC, news wires and bulletin boards in order to follow the market during trading session. OTC BB market makers (MMs) don't use fundamental and technical analysis. However, what they do realize is a lot of dumb money does use this newest niche charting or TA (Technical Analysis) to run a stock either up or down. To the MMs this is like taking candy from a baby. Simply they will paint the tape and use whatever tactic to affect the charting bands. Thus the public and dumb money they will have eating out of their hands. Effectively the MMs can show a strong stock growing weak by manipulating the close price in order to generate selling volume, delaying trading time to manipulate trading activities, or even stalling the ask without honoring orders to hold a stock price.
MMs follow a simple code of business when making a market in a stock especially an OTC BB / PS. That is the level that stocks will seek that yields the most volume. Now this is very important because they make money on the volume buying at the bid and selling at the ask. In other words, by making the market they are buying low and selling high. Now smart money adheres to that rule, so do all the market makers. They could careless whether the stock is at $22 or at $0.0002. All they care about is the action thus being able to sell stock at the offer (The high) and buy stock at the bid (The low). To increase their profitability, they make the spread as great as possible on as many shares
as they can especially if the volume falls off.
When they have mostly all "buy" orders, that's not the price that's going to yield the most volume. They need both buy and sells to get the maximum action. Remember, MMs play the volume. If the volume decreases and there are mostly Buys that become a one way volume, Buy volume. So what they do is let the stock run up to a price where it runs out of steam. They fill all the buy orders there that they can and then comes the pullback one way or another naturally or induced. During the pull back they can buy tons of shares and flip them to those averaging down or trying to catch the bounce. At some price, the stock will be relatively stable and yield the most volume. Now that is the average price you will see
The average price is the point where a stock seeks a level where MMs can profit on the most volume. So during the day that is the price that MMs and momentum/day traders want to see the stock at. Why? Because they know the public and dumb money was chasing the price thing up. Most of the time, the MMs love a flurry of Market Orders which is a dead sign of an artificial run or momentum. Merely it is money in the bank for them. Most get hung in a momentum or day trade or by the tactics of Market makers, who are in the business to screw the public every chance they get. They are merely making the market liquid is their reasoning.
The market makers have created an added complication to the OTCBB's /PS chaos of the already volatile intra-day price movements created by dumb money, momentum and day-traders. MMs can not relate to long-term holders in the OTC BB / PS. That makes absolutely no sense what so ever. They feel a large percentage of trades in the OTC BB / PS market consist of short-term or day-trades, MMs merely view the barrage of buy and sell orders as relatively neutral to the market. How they figure it is when average dumb money buys shares in a company, the MMs feel or rather know with some certainty it is very likely that dumb money will want to sell back those shares relatively quick on the slightest
drop.
Now somewhat comfortable with this logic the MMs merely short sells into the buying and attempts to take the stock down in an effort to "shake out" the weak. Since it is tough to know for sure whether a move is the beginning of a trend, or a routine shake out, this type of deception works quite well for the MMs. What the long-termers do to a stock is surprise the MMs because instead of falling, the shorting has no effect and the price goes up. Now that puts the MM at selling low through shorting and thus having to buy high in order to cover.
Boy, when this happens, the MMs are not very happy campers. The investors and traders aren't supposed to be doing that to them. Now it becomes time to pull out every trick and tactic in the book in order to attempt to get a Bear Raid at every dollar/cent mark or percent from where the stock started. Could be a fraction of a penny in smaller priced securities. What MMs do is give you a chance to make a small amount of money for your momentum and day trading style by shorting it at these levels and trying to get a bear raid each time. Each failure is compounding the MMs short position so they let it go to the next level. Now come more deliberate tactics MMs use to coerce Bear Raid or panic selling.
Once the MM is caught short and the strength of the buy is overpowering the MM will want to cover his short position. So the MMs call up one of his
friendly MMs and says some like "the weather is sure rough today." The MM along with the other "friendly MM initiates a down tick about the same time. Now this can also be done with a certain amount of shares such as an infamous 100 shares flag. This down tick gives the illusion of weakness
designed to hopefully begin the bear raid of selling. The fickle, fearful, day trader, momentum and short term begin to sell out allowing the MM
to cover his short position at lower prices. They will move it down quickly to get it to a price of least financial damage. Problem they have is
long-term investors in the OTC BB / PS. They start accumulating and buying comes flying in when they take it too far thus the MMs took it to the point of volume again and not only investors the other MMs step in the make money on the spread.
Alas the poor MM does not get to cover. Now comes various tactics like stalling, boxing, or even locking the Bid and Ask for a while.
Of course, MMs aggressively deny any sort of collusion designed to fix quotes or spreads.
MMs have a vast resource of tactics and it would take probably more than a lifetime to figure them all out.
So how do investors somehow manage to overcome the obvious deception in OTCBB arena? One answer is indirection trading style by going long which the MMs do not expect. In the war between investors and public companies on the OTC BB / PS vs the MMs, if the MMs have all the advantages due to position or other factors, direct confrontation such as momentum or day trading hitting the stock is a definite death sentence.
However, an indirect approach tends to weaken the path of least resistance before slowly overcoming it. The most effective way is long-term investors slowly accumulating and holding thus drawing the MMs out of its defenses making them as naked as their short position. This is war so this slow accumulation and holding for the long term easily achieves the desired effect to force MMs to cover and knock off the tactics or bury themselves deeper.
The MMs when caught will especially use every trick and tactic in the book to get a Bear Raid thus playing on the individual fear of most people. The MMs feel they have information and position advantages over the investors as long as the holding of the stock is in weak hands or short term
holders. Since they are OTC BB MMs who believe all OTCBB companies are not worth investing and management is ineffective regardless what is happening within the company. Furthermore, MMs know they are in the position to impose a great deal of influence in OTC BB stocks trading when it suits their needs.
This inherent power of position enables the MMs to move the markets at any time up or down. As a result, the only way to draw them out of their
favorable position is going long. Now this does not mean just any company but to effectively nail the MMs, Longs must find the great company on the floor and accumulate long before the MM tactics and games begin.
Isn't this info a "Hoot?"
I always knew they didn't play fairly, but they are almost as bad as terrorist who instead of using a gun, they use our greed to bring us down.
The answer is not to go long but to know you stock sell high buy back low. know the resistance points and know the level the mm are looking for.
I beleive another member posted this a few days ago?
americanbulls@rocket.com
DTRO ( Stock of 2011)
Wednesday, July 6, 2011 10:48 AM
Message body
The CFLs
These CFLs are made almost entirely overseas, mostly in China which were first developed by American engineers in the 1970s. These CFLs consists of glass tubes twisted into a spiral which requires more hand labor, which is cheaper overseas. This is the primary reason why none of the major brands make CFLs in the United States.
The LED lights
What Congress passed will save us the consumers, vast savings in energy and greenhouse-gas emissions, but this is also what made the US plants vulnerable for extinction. The average CFL and/or LED uses about 75 percent less electricity to produce the same amount of light. This was serious justification for Congress to move in this direction.
*********************************************************************************************************
Right now GE manufactures their light bulbs in China and Mexico because of the quality and price to do so. Now comes DTRO. If DTRO can prove that it can at least mirror or even better than mirror the quality, then it is believed that GE would much rather go with having their bulbs manufactured in the US to preserve and/or enhance jobs here in the US. I’m guessing that there is a good chance that GE could be the company that DTRO signed a patent agreement with that’s a leading diversified technology company with sales exceeding $20 billion and operations in more than 60 countries. Here’s the piece from the DTRO PR below:
Quote:
--------------------------------------------------------------------------------
http://www.dtro.com/Press%20Release%207.html
http://www.elascourethane.com/Press_release_8.html
On April 12, 2010 Deltron’s Elasco manufacturing subsidiary executed a general supplier and patent agreement with a leading diversified technology company with sales exceeding $20 billion and operations in more than 60 countries. The company has chosen Elasco to provide expertise on the tooling, fixtures, equipment, molding and manufacturing processes of a new product in preparation for mass production. Elasco will also produce working prototypes.
--------------------------------------------------------------------------------
You can Google a few different ways some of the key words from the DTRO PR above and you would come up with a variety of multi-billion dollar companies of which DTRO could be referring to besides GE. There was info that could have suggested that DTRO was referring to a number of other multi-billion dollar companies of which I had come up with IBM, Cisco, GE, 3M, or Ford from Google searching that could have fit what DTRO mentioned in its PR.
Much of this is centered on the DTRO wholly-owned subsidiary Elasco Urethane which is a profitable engineering and plastics design, molding and manufacturing company:
http://www.elascourethane.com/
I have confirmed with the company that they are in some serious discussions where tests have already been conducted and results are expected to be released any day now. I am inclined to believe that those results are going to be very positive. I recommend investors call the company to confirm for themselves.
Elasco, Inc. has been in business since 1979 and again… is profitable. It has a 7000-square foot facility that provides complete design and manufacturing services, including prototype work, mold and tooling design, manufacturing, polymer mixing and custom casting. The company fuels growth by developing products that can be made lighter and perform better with their polyurethane formulas. Elasco can produce up to 6,000 pounds of polyurethane a day made from the company's proprietary polyurethane blends developed by Elasco urethane chemists.
The importance of this polyurethane is for a variety of reasons as indicated below:
http://www.magnalight.com/pc-47464-2-LED-Blasting-Light--Flood-Light--Magnet-Mount--Polyurethane--25'-63-Cord--5400-Lumen--90-Watt.aspx
http://www.epicresins.com/led.asp
** Polyurethane construction eliminates the need for a ground wire.
** Polyurethane provides superior lamp protections guards against breakage from rough handling and vibration.
** Polyurethane potting and encapsulating compounds help to meet the needs of LED product manufacturers when LED encapsulation is required.
** These LED polyurethane potting compounds are used in applications ranging from automotive lights to LED signs to LED indicators that are incorporated into other products.
** Flexible polyurethane LED potting compounds will seal out moisture and contaminants over a large temperature range.
Good point,with big news we could be on a run!!!
Barchart has second resistance at.0009
What is resistance after that .0012-.0015? Pending there is big news on the way we may be looking at penny land!!!
Buying volume up, news may be on the way.Been getting several emails.
Another Email from The STREET.
Tuesday, July 5, 2011 3:25 PM
Message body
Did come across some good DD,,,,,,,,,,,,,,
I'm not so sure that such is the case here with DTRO. I do not believe that the company is diluting. I have recently spoken to the company and the OS is still 758+ million shares. From my understanding, there have been some restricted shares that had become unrestricted from their 6 month or 1 year time lapse that some have peeled out, but the company is not diluting any shares. If I had to guess, I think such is either done or nearly done to where I believe such will not be any issues in moving forward.
Since DTRO is a fully reporting penny stock trading on the OTCQB, I'm going to take my chances and believe them. Here’s what I see and have learned to believe with DTRO after further doing my due diligence (DD)…
From the article/slideshow below (and from information originating from the DTRO IBox), it was mentioned that the last major General Electric (GE) factory making ordinary incandescent light bulbs in the United States was closing during the month of Sep 2010:
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/07/AR2010090706933.html
http://www.washingtonpost.com/wp-dyn/content/gallery/2010/09/07/GA2010090704577.html?sid=ST2011013003428
Even small through some eyes, it marked a sad exit for a product and company that can trace their roots back to the days of Thomas Alva Edison's and his innovations in the 1870s.
The close of that GE factory was going to cause 200 workers to lose their jobs at the plant here in the US. The operation was moving out of the US to setup operations overseas. As we all know, there has been a huge decline in the US manufacturing jobs to overseas manufacturing over the past few years.
Congress passed an energy conservation measure in 2007 that essentially had set the new standards for banning ordinary incandescent light bulbs by 2014. This new law will force millions of households here in America to switch to more efficient bulbs to be replaced with these new compact fluorescents (CFLs) or Light Emitting Diode (LED) lights.
*********************************************************************************************************
The CFLs
These CFLs are made almost entirely overseas, mostly in China which were first developed by American engineers in the 1970s. These CFLs consists of glass tubes twisted into a spiral which requires more hand labor, which is cheaper overseas. This is the primary reason why none of the major brands make CFLs in the United States.
The LED lights
What Congress passed will save us the consumers, vast savings in energy and greenhouse-gas emissions, but this is also what made the US plants vulnerable for extinction. The average CFL and/or LED uses about 75 percent less electricity to produce the same amount of light. This was serious justification for Congress to move in this direction.
*********************************************************************************************************
Right now GE manufactures their light bulbs in China and Mexico because of the quality and price to do so. Now comes DTRO. If DTRO can prove that it can at least mirror or even better than mirror the quality, then it is believed that GE would much rather go with having their bulbs manufactured in the US to preserve and/or enhance jobs here in the US. I’m guessing that there is a good chance that GE could be the company that DTRO signed a patent agreement with that’s a leading diversified technology company with sales exceeding $20 billion and operations in more than 60 countries. Here’s the piece from the DTRO PR below:
Quote:
--------------------------------------------------------------------------------
http://www.dtro.com/Press%20Release%207.html
http://www.elascourethane.com/Press_release_8.html
On April 12, 2010 Deltron’s Elasco manufacturing subsidiary executed a general supplier and patent agreement with a leading diversified technology company with sales exceeding $20 billion and operations in more than 60 countries. The company has chosen Elasco to provide expertise on the tooling, fixtures, equipment, molding and manufacturing processes of a new product in preparation for mass production. Elasco will also produce working prototypes.
--------------------------------------------------------------------------------
You can Google a few different ways some of the key words from the DTRO PR above and you would come up with a variety of multi-billion dollar companies of which DTRO could be referring to besides GE. There was info that could have suggested that DTRO was referring to a number of other multi-billion dollar companies of which I had come up with IBM, Cisco, GE, 3M, or Ford from Google searching that could have fit what DTRO mentioned in its PR.
Much of this is centered on the DTRO wholly-owned subsidiary Elasco Urethane which is a profitable engineering and plastics design, molding and manufacturing company:
http://www.elascourethane.com/
I have confirmed with the company that they are in some serious discussions where tests have already been conducted and results are expected to be released any day now. I am inclined to believe that those results are going to be very positive. I recommend investors call the company to confirm for themselves.
Elasco, Inc. has been in business since 1979 and again… is profitable. It has a 7000-square foot facility that provides complete design and manufacturing services, including prototype work, mold and tooling design, manufacturing, polymer mixing and custom casting. The company fuels growth by developing products that can be made lighter and perform better with their polyurethane formulas. Elasco can produce up to 6,000 pounds of polyurethane a day made from the company's proprietary polyurethane blends developed by Elasco urethane chemists.
The importance of this polyurethane is for a variety of reasons as indicated below:
http://www.magnalight.com/pc-47464-2-LED-Blasting-Light--Flood-Light--Magnet-Mount--Polyurethane--25'-63-Cord--5400-Lumen--90-Watt.aspx
http://www.epicresins.com/led.asp
** Polyurethane construction eliminates the need for a ground wire.
** Polyurethane provides superior lamp protections guards against breakage from rough handling and vibration.
** Polyurethane potting and encapsulating compounds help to meet the needs of LED product manufacturers when LED encapsulation is required.
** These LED polyurethane potting compounds are used in applications ranging from automotive lights to LED signs to LED indicators that are incorporated into other products.
** Flexible polyurethane LED potting compounds will seal out moisture and contaminants over a large temperature range.
I’m not sure what Elasco is making in Revenues to be considered profitable as of late, but the link below reflects that Elasco is making anywhere from $20 to $50 million in Annual Revenues:
http://www.manta.com/c/mmjcb8r/elasco-inc
The addresses match from the DTRO/Elasco website below to be the same company within the link above reflecting such Revenues and it states from the link above that the info was updated in 2011:
http://www.elascourethane.com/Contact.html
To further add with DTRO, their other wholly-owned subsidiary is called Blu Vu Life Support Technology:
http://www.bluvudeepbreather.com/
From further researching about this wholly-owned subsidiary of DTRO, there is no technology that’s out there in the market today of the quality of their new Rebreather technology as indicated below:
* Maximum No-Decompression Time
* Extended depth capability
* Stealth No bubbles
* Flying After Diving
* Ship bottom inspections
* Size & weight of equipment package reduced
* Helium consumption minimized
The DTRO Rebreather is superior to anything out there in the market today from what I understand. The current top diving equipment of such retails at about $10,000 per unit. The Rebreather was originally retailing closer to $20,000, but has now been manufacture to be just as good as or better than its original models to where the cost has been cut down to about $12,000 per unit. The military (Navy), police, and many personal divers are well aware of this new Rebreather and can’t wait for the launch of these new machines to be ready and placed into the market. Read below to further understand why I am very confident that DTRO will be closing in on some very serious contracts with their Rebreather:
Quote:
--------------------------------------------------------------------------------
http://www.bluvudeepbreather.com/armedforced.html
Rebreather Technology and Armed Forces Diving
For decades the military has used rebreathers for a wide range of activities. Typical operational uses include covert access, defusing mines, and specialized covert operations. The post-9/11 environment has seen the use of rebreathers extend from traditional military users to other paramilitary groups focused on anti-terrorism and drug interdiction activities, such as county SWAT teams, Coast Guard, and other harbor monitoring groups. In the decades to come, we can expect both the quantity and scope of activities requiring Rebreather use to increase.
Navy SEALs & EODs
The U.S. Navy has been actively seeking to upgrade and replace the rebreathers in fleet use. While many commercially available units have been tested, none have met the criteria being sought. The U.S. Navy is considering replacement of the units used by both their Special Forces teams, like the SEALs, as well as their Explosive Ordinance Demolition (EOD) units.
Special Forces teams routinely utilize oxygen closed circuit rebreathers when making covert insertions into enemy occupied territory. They also use oxygen rebreathers when planting devices on enemy ship hulls, such as listening or tracking devices, or mines or other explosives. Oxygen rebreathers are used because they are small, light and compact. The problem with these devices is that any time spent below 20 fsw / 6 msw is hazardous, subjecting the user to high risk of seizures from oxygen toxicity. If they had a mixed gas rebreather with similar physical properties, it would significantly increase the safety of some operations. While not yet available, Blu Vu’s technology promises to provide such a solution.
Mixed gas closed circuit rebreathers are often used by military EOD teams to defuse or explode mines. Rebreathers can be manufactured to have low noise and magnetic signatures, and also allow divers to spend hours at depths up to 60 fsw / 18 msw with no decompression penalties, ideal for this type of work. The rebreathers under development by Blu Vu provide these same capabilities, in a much small, lighter, and more reliable package.
History
Finally, mixed gas closed circuit rebreathers have been used in a wide range of covert mission for espionage purposes. One example of this was work to tap telephone cables used by the Soviet Union during the cold war. Divers using rebreathers locked out of submarines at depths of up to 400 fsw / 120 msw to place instrument packages on these cables, allowing United States intelligence units to gather information gleaned from supposedly secure communication sources. Blu Vu equipment is capable of this type of work, with the same advantages of increased depth capability and reduced package size.
Blu Vu Growth: Strategic Partners
Since the terrorist attacks on the World Trade Center in New York on September 11, 2001, there has been increased attention paid to anti-terrorism in the United States. Many agencies sharing responsibility for protecting the country’s harbors, oil production facilities, and strategic infrastructure such as bridges are now considering using rebreathers to advance their aims in these endeavors. Some of the agencies, which have approached Blu Vu, include the United States Coast Guard, county Sheriff dive teams, county and local Special Weapons and Tactics (SWAT) teams, and other law enforcement groups. Many of these groups have the desire, the will, and ample funding to implement this technology.
Blu Vu is poised at exactly the right moment in time to capitalize on the continuing drive to upgrade and modernize the equipment being used by today’s military and public safety dive teams.
Email from Deltron, content is old news just got it today!
Tuesday, July 5, 2011 11:22 AM
Message body
Deltron's Blu Vu Invited to Present its Rebreather Solutions at America's Largest Consumer Dive Expo
GARDEN GROVE, Calif., Jun 13, 2011 (BUSINESS WIRE) -- Deltron, Inc. (OTCBB: DTRO) is pleased to report that the Company's highly innovative rebreather Bail Out Valve (BOV) components were showcased at SCUBA Show 2011 on June 4th and 5th in Long Beach, California. Dr. Jeffrey Bozanic, international diving safety expert and head of Deltron's Blu Vu division, was invited to conduct a seminar for the conference's more than 12,000 attendees entitled "Rebreathers for the Mass Market". Deltron's Blu Vu designs and develops components and systems for closed-circuit rebreathers--underwater life support systems that recirculate breathing gases to enable deeper, longer and more productive dives.
Founded in 2008, Blu Vu is led by internationally renowned deep sea and cave diving expert Jeffrey Bozanic, Ph.D. Blu Vu is focused on the design and development of proprietary closed-circuit rebreathers and components for commercial and recreational diving. At SCUBA Show 2011 the Blu Vu team presented its rebreather components to potential customers including rebreather OEM's, resellers, dive shops, diving experts, diving agencies, dive tech developers and to PADI, the training agency for recreational divers.
Dubbed America's Largest Consumer Dive Expo, SCUBA Show 2011 is sponsored by organizations including DAN, PADI, California Diving News, the Wyland Foundation, LiquidAssets.tv, Sport Chalet and REEF. World famous marine artist and conservationist Wyland created a live painting and exhibited his artwork at the show. Hundreds of companies and agencies exhibited, and attendance topped last year's record 11,216 registered visitors.
Henry Larrucea, CEO of Deltron, commented: "We were extremely pleased to have been selected to present our solutions at SCUBA Show 2011, one of the recreational diving industry's top conferences. Dr. Bozanic's seminar on the growing use of rebreathers for recreational diving and the many advantages of rebreathers over conventional SCUBA systems was well attended and well received. Deltron is excited to pursue the opportunities we see opening up within what we believe is a highly lucrative niche market with significant room for growth."
Last week Deltron reported highly positive second quarter financial results. For the quarter ended March 31, 2011, Deltron's wholly owned Elasco, Inc. manufacturing subsidiary increased revenue by 36.5% and increased gross profit by 322% over the second quarter last year.
About Deltron, Inc. (DTRO.OB)
Deltron seeks to acquire profitable businesses with strong management teams, substantial revenue and established market positions. Wholly owned Elasco is a proven innovator in product manufacturing with a 32-year operating history, diverse customer base and vertically integrated manufacturing facility in Garden Grove, California. Blu Vu, a division of Deltron, is a developer of proprietary closed circuit rebreather technology and components that go beyond conventional scuba systems to enable commercial and recreational divers to go deeper, stay underwater longer and recover faster.
This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. DTRO has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect DTRO's current beliefs and are based upon information currently available to it.
Accordingly, such forward looking statements involve known and unknown risks, uncertainties and other factors which could cause the DTRO's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. DTRO undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.
SOURCE: Deltron, Inc.
CONTACT: Deltron, Inc. Henry Larrucea Investor Relations 714-908-5164 investor.relations@dtro.com info@dtro.com www.dtro.com Copyright Business Wire 2011 -0-
KEYWORD: United States North America California INDUSTRY KEYWORD: Swimming Other Sports Manufacturing Other Manufacturing Sports SUBJECT CODE: Conference Product/Service Trade Show
http://www.otcmarkets.com/stock/DTRO/news
Benefits of Blu Vu Rebreather technology
•Maximizes No-Decompression Time
•Extended diving depth capability
•Stealth - No bubbles
•Negligible limits to Air Travel after Diving
•Ship bottom inspections
•Size & weight of equipment package reduced
•Helium cost and consumption minimized
I think DTRO has diluted shares as well asthose that have been paid with shares, also scared share holders bailing out, in the meantime MMs playing their games in the P&Ds. JMO!!
Thanks TJG when I posted it on the top it said message flagged,I hope it posts ok, I think some of you will find it interesting, although some may already be aware how much MMs can control the market.
MARKET MAKERS SHAKEDOWN
Message flagged
Thursday, June 30, 2011 2:38 PM
Message body
More and more investors are winning the game nowadays despite all bashers that float through the Internet that has become part of the game. Floor traders of market makers often watch CNBC, news wires and bulletin boards in order to follow the market during trading session. OTC BB market makers (MMs) don't use fundamental and technical analysis. However, what they do realize is a lot of dumb money does use this newest niche charting or TA (Technical Analysis) to run a stock either up or down. To the MMs this is like taking candy from a baby. Simply they will paint the tape and use whatever tactic to affect the charting bands. Thus the public and dumb money they will have eating out of their hands. Effectively the MMs can show a strong stock growing weak by manipulating the close price in order to generate selling volume, delaying trading time to manipulate trading activities, or even stalling the ask without honoring orders to hold a stock price.
MMs follow a simple code of business when making a market in a stock especially an OTC BB / PS. That is the level that stocks will seek that yields the most volume. Now this is very important because they make money on the volume buying at the bid and selling at the ask. In other words, by making the market they are buying low and selling high. Now smart money adheres to that rule, so do all the market makers. They could careless whether the stock is at $22 or at $0.0002. All they care about is the action thus being able to sell stock at the offer (The high) and buy stock at the bid (The low). To increase their profitability, they make the spread as great as possible on as many shares
as they can especially if the volume falls off.
When they have mostly all "buy" orders, that's not the price that's going to yield the most volume. They need both buy and sells to get the maximum action. Remember, MMs play the volume. If the volume decreases and there are mostly Buys that become a one way volume, Buy volume. So what they do is let the stock run up to a price where it runs out of steam. They fill all the buy orders there that they can and then comes the pullback one way or another naturally or induced. During the pull back they can buy tons of shares and flip them to those averaging down or trying to catch the bounce. At some price, the stock will be relatively stable and yield the most volume. Now that is the average price you will see
The average price is the point where a stock seeks a level where MMs can profit on the most volume. So during the day that is the price that MMs and momentum/day traders want to see the stock at. Why? Because they know the public and dumb money was chasing the price thing up. Most of the time, the MMs love a flurry of Market Orders which is a dead sign of an artificial run or momentum. Merely it is money in the bank for them. Most get hung in a momentum or day trade or by the tactics of Market makers, who are in the business to screw the public every chance they get. They are merely making the market liquid is their reasoning.
The market makers have created an added complication to the OTCBB's /PS chaos of the already volatile intra-day price movements created by dumb money, momentum and day-traders. MMs can not relate to long-term holders in the OTC BB / PS. That makes absolutely no sense what so ever. They feel a large percentage of trades in the OTC BB / PS market consist of short-term or day-trades, MMs merely view the barrage of buy and sell orders as relatively neutral to the market. How they figure it is when average dumb money buys shares in a company, the MMs feel or rather know with some certainty it is very likely that dumb money will want to sell back those shares relatively quick on the slightest
drop.
Now somewhat comfortable with this logic the MMs merely short sells into the buying and attempts to take the stock down in an effort to "shake out" the weak. Since it is tough to know for sure whether a move is the beginning of a trend, or a routine shake out, this type of deception works quite well for the MMs. What the long-termers do to a stock is surprise the MMs because instead of falling, the shorting has no effect and the price goes up. Now that puts the MM at selling low through shorting and thus having to buy high in order to cover.
Boy, when this happens, the MMs are not very happy campers. The investors and traders aren't supposed to be doing that to them. Now it becomes time to pull out every trick and tactic in the book in order to attempt to get a Bear Raid at every dollar/cent mark or percent from where the stock started. Could be a fraction of a penny in smaller priced securities. What MMs do is give you a chance to make a small amount of money for your momentum and day trading style by shorting it at these levels and trying to get a bear raid each time. Each failure is compounding the MMs short position so they let it go to the next level. Now come more deliberate tactics MMs use to coerce Bear Raid or panic selling.
Once the MM is caught short and the strength of the buy is overpowering the MM will want to cover his short position. So the MMs call up one of his
friendly MMs and says some like "the weather is sure rough today." The MM along with the other "friendly MM initiates a down tick about the same time. Now this can also be done with a certain amount of shares such as an infamous 100 shares flag. This down tick gives the illusion of weakness
designed to hopefully begin the bear raid of selling. The fickle, fearful, day trader, momentum and short term begin to sell out allowing the MM
to cover his short position at lower prices. They will move it down quickly to get it to a price of least financial damage. Problem they have is
long-term investors in the OTC BB / PS. They start accumulating and buying comes flying in when they take it too far thus the MMs took it to the point of volume again and not only investors the other MMs step in the make money on the spread.
Alas the poor MM does not get to cover. Now comes various tactics like stalling, boxing, or even locking the Bid and Ask for a while.
Of course, MMs aggressively deny any sort of collusion designed to fix quotes or spreads.
MMs have a vast resource of tactics and it would take probably more than a lifetime to figure them all out.
So how do investors somehow manage to overcome the obvious deception in OTCBB arena? One answer is indirection trading style by going long which the MMs do not expect. In the war between investors and public companies on the OTC BB / PS vs the MMs, if the MMs have all the advantages due to position or other factors, direct confrontation such as momentum or day trading hitting the stock is a definite death sentence.
However, an indirect approach tends to weaken the path of least resistance before slowly overcoming it. The most effective way is long-term investors slowly accumulating and holding thus drawing the MMs out of its defenses making them as naked as their short position. This is war so this slow accumulation and holding for the long term easily achieves the desired effect to force MMs to cover and knock off the tactics or bury themselves deeper.
The MMs when caught will especially use every trick and tactic in the book to get a Bear Raid thus playing on the individual fear of most people. The MMs feel they have information and position advantages over the investors as long as the holding of the stock is in weak hands or short term
holders. Since they are OTC BB MMs who believe all OTCBB companies are not worth investing and management is ineffective regardless what is happening within the company. Furthermore, MMs know they are in the position to impose a great deal of influence in OTC BB stocks trading when it suits their needs.
This inherent power of position enables the MMs to move the markets at any time up or down. As a result, the only way to draw them out of their
favorable position is going long. Now this does not mean just any company but to effectively nail the MMs, Longs must find the great company on the floor and accumulate long before the MM tactics and games begin.
Isn't this info a "Hoot?"
I always knew they didn't play fairly, but they are almost as bad as terrorist who instead of using a gun, they use our greed to bring us down.
The answer is not to go long but to know you stock sell high buy back low. know the resistance points and know the level the mm are looking for.
"If you click on the link below your email will be removed from our system"
Has anyone received an email from MEGAPICK called MARKET MAKERS SHAKEDOWN? I am not computer savy enough to get it posted on the board, could someone help me out with this it is pretty good.
Count me in !!! LOL
Buyers are getting shares on the Bid.I filled the boat at .0008 could be others that have been filled on the high volume the other day,That would come in as sells
How do you know that?
I think the DD GUY got me!!!
A couple of messages have been deleted, Why???????????
Are they working with GE Capital for financing or What. Thanks latrod
If I remember correctly he mentioned they would be or are looking for a prduction Co. I dont know how much of the unit Blu Vue would or will produce?
Mick, I had also called aound 3 mo. ago left a message then received a return call and we talked about the Rebreather he said they initially had a cost of 25K,then 18K and looking to get the cost down to 8 or 10k. He also said that they would not put out junk PR.but would put out PR unless it was important,he also said they were looking for production in the summer or late summer?latrod
Just got off the phone with DTRO IR. I asked about Blu Vue Rebreather PR. Coud not Pin him Down on time of PR, he just said soon!!! Also asked about a possible aquisition there is none. So DTRO has not aquired anything. Except, IMO Money To finally get the Rebreather into production,ready for PR!!!!!!!
What is with the change Or addition of,SIC Code Tires & Inner Tubes,Industry Misc. Financial Services,Sector Financial. I thought they where in Oil and Natural Gas?
You got it, thats what I have been doing. Im with you on the Rebreather Technology, I think they really have something thats going to be in high demand, not on the weekend divers list to get.
I wish I had sold on this last P&D,and I would be buying back in about now or a little later for the next P&D or good PR release.
We will find out sooner or later, hopefully sooner. I have been in DTRO for some time now, buying and selling on the P&Ds with 10 Mil,make a few K here & there & waiting for a big payday hopefuly.Time will tell it all.
Refer to post # 2807 around the begining of April. This may give some insight to DTRO time line for Big news!!!
I wonder if there will be any power in the hour !!!
Exactly,I have been in DTRO for several months, played the ups and downs,but now I am holding for the big payday.Run DTRO Run!!!!!!!!!!!!!
Iwas going over the news letter from WallStPicks to see how much they where compensated,quote,WallStPicks was not compensated for the profiling of DTRO.EOQ Position: Long
DTRO #6 on top 10 most active,Sweet
Holding, cant wait to see whats coming. GO DTRO!!!!!!!!!!!
Thanks for the link to L2 chart I Hub chart is out of whack.
Looks like the MMs got it locked?
Make that 18s GO DTRO!!!
Already in the 17s!!
Penny Land!!!
I have 10 Mil @.0012 been holding tight for penny land,GO DTRO!!!
Sweet!!!
I hope he is right this will blow wide open.