PSYC Corporation (PSYC)

[Don Beasley]

Current Trading Analysis? GOHE
So does anyone here ever check the OTC Short Report? If you do you'll see that 50% of shares traded yesterday were short trades. This is not abnormal in any way, but if you understand how MM's work, it makes perfect sense. MM's have a "share pool" that they can sell into the market at any given time. When large volume pours in on a relatively low volume stock, they take advantage of these high volume swings and when their "pool" runs low they will short these shares to deliver to a buyer. They have to buy these shares back and they'll push the price down in order to do so. However, the Level II is thinning out on the way back up. The key here is the long's! Obviously, the MM is playing on the day traders "trigger finger". When the stock lowers a few % the "day goers" will take their profit or loss for the day and this will give the MM's a chance to cover those shorts. But when long holders dump their positions in a panic the MM's make more money and gather more shares in the "pool" to do it all over again. This is the hurdle that the company has to help overcome by releasing solid news to convert those day traders to strong handed long holders. Any thoughts???

OTC Short Report