Vapor Group Inc (VPOR)

[SMF Trader]

I can confirm that is what they do. Most times penny stocks are just retail traders and market makers making a market. The market makers don't pay commissions like we do so they have much higher profit margins and can profit from just trading between the bid and the ask.

The lower the volume the higher the spread. A lot of times they'll act like they're buyers when they're really sellers and vice versa. I admit I bought it at the higher end of the channel range a week or so a go but added a few more blocks at lower levels.

That's the thing they have the money and capital to prevent a move to happen, regardless of buying pressure and those types of things happen when note holders want the lower price so they can get more shares at lower prices.

That's why typically when they catch wind of these convertible notes the market makers sell first it's not the dilution hitting the market yet. That tends to happen at lower levels.

Market makers look at 52 week high and lows so we'll be working through last years numbers which were the last time this thing was worth anything above it's volume weighted average price.

3/24/2014 $0.3800 $0.3900 $0.3600 $0.3900 8,494,700
3/25/2014 $0.4200 $0.4200 $0.3700 $0.3800 14,904,300
3/26/2014 $0.3800 $0.4500 $0.3400 $0.4200 10,897,900
3/27/2014 $0.3900 $0.4300 $0.2200 $0.3200 47,162,500
3/28/2014 $0.3300 $0.3300 $0.2600 $0.2900 12,709,100
3/31/2014 $0.3200 $0.3200 $0.2800 $0.3000 11,041,200


If I'm a market maker I've already covered my $.42 shorts but if I was working and it's been one year and the trade is starting to go against them, they cover, from $.42 down to even $.02 is a nice profit so they'll cover all the way up.

Once these numbers are out of their formulas I bet we go higher and they will continue to use price to scare off volume as volume levels. They can't keep it boxed in price wise with this much volume if it keeps up. They work on several different cycles 3,5,10 days ect. Clearly more buy side volume that sell side today.

Volume Weighted Average Price is .021 VWAP resistance at .002 and .0024 next.