8000 Incorporated (EIGH)

[Cube]

Brokerage houses ask Market makers for shares for their customers. They need to provide a fluid market and if they don't provide the brokergae house shares they will go somewhere else. So as not to lose business the Market maker will in essence produce air shares. When demand is steady and their is pressure on the stock, the MM may find himself owing quite a bit of shares. A day may come where he will cover..buy. A short cover begins.