Red Flags of Market Maker Manipulation (MMM) or Maintaining an Orderly Market
Market Makers typically do not carry inventories in OTCs, especially thinly traded securities. When they do carry inventories the stock rises so they can sell their inventories.
However, the following are my 10 Red Flags for MMM (Market Maker Manipulation) I have observed since I have been trading:
Cross-Trading is the control by one or only a few brokers who match purchases and sales to drive up or down the stock price which ever way benefits them. This is the hallmark of penny stock manipulation.
Boxing where a broker will position himself on both the ask and the bid, which is the heart of penny stock manipulation eliminating competing market makers and allowing only cooperating brokers to bid on stocks, the result is a kind of rigged auction.
Stock Call Signals which appear to be small share blocks of stock typically 100, 200 and 300 to get a supply of stock another MM or broker to help with an "Oversell", which is the amount of shares sold by a Market Maker that were not bought. Market Makers buy on the bid and selling on the ask, which is an automatic buy low sell high advantage for them same as being the house in a casino.
Locking is when the MM on the ask moves to the bid in an attempt to back the bidding MM off to drive the price of the stock down. Thus by attacking the bid, both the bid and the ask are the same price. Sometimes a stock will stay locked for sometime if the bidding Market Maker does not move off the bid wanting more stock.
Nothing Done / No Fills is applied to your order and market makers trade ahead of you or flat out wont fill no matter what regardless of complaints, but if persistent will eventually get a fill.
Buy orders at the Ask Filled on the bid, which is used to show weakness in the trading thus an investor's buy is shown as an investor sell.
Excessive spreads between bid and ask prices.
Oversell grows daily, which is where the market makers sell more stock than they have bought.
The Churn is market makers trading where most of the volume (59% is among themselves.
FUDs are posters (Usually anonymous posters) posting deliberate false and misleading rumors (rumor-mongering) in an attempt to deflate the stock price by instilling Fear, Uncertainty, & Doubt. (Could these be Market Maker or short voices) and of course attack with the same nonsense such as myself being a scamster. But if you track the posting to the trading you will make an interesting observation. according to Stock Whiz I am doing more harm than good tracking the stock and posting it. Exposing possible MMM by my commentary of the trading.
Next is an old Professional basher that always seems to show up. Comes out of retirement to make 7 posts then leaves and hasn’t posted since … hmmm…
The OTC is unregulated and thus they do not have to fill an order or report a short position.
OTC Shorting Note: Someone once asked (an anonymous trader) about shorting an OTC. Well, we all know it is suppose to be illegal but in a phone conversation with a shorter, The gentleman would Front Load then Pump(Stretch the facts positive) Dump into the hype volume then Short once the momentum backed off and if necessary Bash on being lied to by the company.
