Reliant Financial Service Corp. (RFNS)

[STOXTER]

It is possible to get in a repetetive cycle between two MM's or even just one really skilled MM. Example: Buy 21,000 at 13, sell 1,000 to bid at 12, buy 21,000 more at 13, sell 1,000 to bid at 12. In some cases, others may even trade in your favor. Repeat this and adjust make it look like standard swirling volume and make the accumulation get lost in the noise. Build a few hundred k or whatever. Then buy a large chunk on ask to pump a penny or two. Now reverse: Sell 21k to bid, buy 1k on ask, sell 21k to bid, buy 1k on ask. 100k shares accumulation could be broken up into 10 trades for $100 comission plus $100-200 loss on the sells. Lets say $250. The sells would repeat and it would cost another $250. For a 1 cent per share gain, the MM makes $500 per day per 100k shares. Do that with a few stocks and it's a daily paycheck. RHWC had much bigger swings - pretty sure there were MM's making $5-10K per week on this stock. The same methodology can be done with shorting. This is why thinly traded stocks can be dangerous - the lower the ratio of public traders to MM's, the greater the manipulation. Willing to bet the same was done with DYTB earier this week and the MM likely made 8 cents per share on average with 50-75k shares.