Atwec Technologies Inc (ATWT)

[nez]

Joker,
I PMed this to some others. It made some things easier for me conceptualize. I don't have the link but it is in an I box one one of the boards. Maybe someone else knows, if so please let me know. TIA.
Gotta get the kids,TTYL and hang tough,
Nez
(didn't check for errors, no time)

FWIW;
Good MM read #1 >>

Good read here on MM games>

Example of MM supporting PPS stock northward:

Let's say that a stock (shell) has been lying quietly at $.25 bid $.50 offered. A limit order comes into one of the MMs to buy at $.50 for a thousand shares. Prior to this trade that MM may be flat (neither long nor short any shares). He fills the order and is now short 1,000 shares. He may raise his bid hoping to find a seller to flatten out his position. But before he realizes it a wave of buyers have come in and cleared out all the $.50 offers. Now the stock is $.50 bid .75 offered. Here comes that Big firm he just sold the 1,000 shares to at .50 with another bid for 1000 at .75. He makes this print. Now he is short 2,000 at an average of .625. The market keeps moving and now its .75 bid 1.00 offered. Now he has to make a decision. Just like investors, MM Hate to take a loss. So 9 times out of 10 he will now sell 2000 at 1.00 making him short 4000 but with an average .81. At this time he would love to see a seller at .75 so he can cover his short and make a few but instead the market keeps moving up. Now it is 1.00 to 1.25 and here comes the buyer again at 1.25. He doesn't want to lose the call so now he needs to sell 4,000 at 1.25 to keep his break even point above the bid. Now he is short 8,000. Market moves up to 1.25 bid 1.50 offer here comes the buyer now he feels he must sell 8000 here because stocks don't go up forever. Now he is short 16,000. And so on and so on. If the stock keeps moving up, before he realizes it he could be short 50k or 100k shares (depending how big his bank is). Finally the market closes for the day and on paper he may look all right in that his break even price may be around the closing price. But now he has to figure out how to entice sellers so he can cover this short. It is important to note that if this happened to one MM it has probably happened to most all of them.

Some ways MM's entice sellers:

1. Run the stock up with a tight spread in a fast market, then open up the spread to slow down the buying interest. After it has cooled off for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a quick profit by hitting the bid; on the tight spread. Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread.

2. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon. Hopefully, after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over. Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular.


Good MM read #2...


Good read on MMs..




The savvy long-term investors never chase stocks up. For the most part that is
momentum players and daytraders where most of it or what follows is dumb
money. Instead the long-term investors use a couple of simple strategies in
order to position themselves. One is to find a stock no one immediately sees
has huge potential and accumulate. Long-term investors are not interested in
trading against the public mind or the dumb money. That's where the majority
of the money can be made but even more can be made if the base of a stock is
held extremely strong by investors. However the second is not to doubt the
research which is the underlying basis for going long and holding.


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 nitch 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. 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 $83 or
at $0.23. 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 and the NASD is not going
to do anything about it. They are merely making the market liquid is there
reasoning.


The market makers have created an added complication to the OTCBB's 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. That
makes absolutely no sense what so ever. They feel a large percentage of trades
in the OTC BB 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 the 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 are supposed to be doing that no 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 mark or percent from where the stock started. Could be 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. 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, but a recent SEC investigation tells another story.


MMs have a vast resource of tactics and it would take probably more than my
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 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.

JUST FOUND THIS ONE TODAY. WISH I COULD REMEMBER THE FIRST TWO SOURCES AS I AM NOT THE AUTHOR AND CREDIT WHERE CREDIT IS DUE.

http://www.investorshub.com/boards/board.asp?board_id=7489


Manipulation:

This is a device used more by Market Makers (MMs) than others, but by no means, limited to them alone.

MMs rank right behind bankers, lawyers, politicians, and many CEOs.

They have the ability to create what appears to be volume and increase in pps (price per share), giving the false impression that a stock is going up in value. What is to be closely watched for is whether it is a sustained increase in pps, or only temporary.

They have the ability to 'over accentuate' a 'run' giving the impression the issue is going up quickly. Often, they will naked short shares at the HOD (high of day) only to buy them back (from you) on the retrace. They understand terms like 'weak hands', 'panic', 'fear', and have no qualms of using their skills to make themselves more money at your expense.

No one makes more money in the stock market, than MMs. Usually, it's YOUR money, they make!

MMs have an arsenal of tricks they use, of which would be impossible to outline them all. Other common ones are signals. Often, they will use 100 share trades to take a pps up or down, depending on what their desire is. If they have shares they want to sell, they will try to 'take it up', giving the appearance of a pps going up in value. Conversely, when they need shares, they 'take the pps down', on 100 share trades, hoping to 'shake weak hands' loose of their shares with the fear of a plumetting pps.

Another form of manipulation is performed by unscrupulous investors or investment bankers, usually by 'bidwhacking' a pps down, so as to buy more shares at lower prices, whether on the open market or thru private placements. (A private placement is when a company sells shares directly to an investor, as opposed to the open market).