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Re: Cutting Corners post# 1496

Thursday, 06/23/2005 11:37:15 PM

Thursday, June 23, 2005 11:37:15 PM

Post# of 33129
New chart; ADX problem & MM accumulation channel explaination.

On the OTC:BB you can call up the market makers volume records, and see which one is trading the most volume. You "can't" get this info for TNOG, it's pink. But if you want to check other stocks on the OTC:BB you may be trading, enter the symbol here; http://www.otcbb.com/dynamic/tradeact.htm

For any given company stock, there could be a different number of market makers trading in the stock. Who covers which companies stock depends on business decisions made by the broker/dealer.

Once a M&M (broker/dealer) takes a position (buys an inventory)in the company they are to help create a free flow of daily trades in that stock, by closing trade orders which come into their trading desk. They do this buy selling or buying orders which they can not find matching orders on the open market.

So as they recieve orders, they check the open market, if they can't find a matching order, they can do three things. Buy or sell from their inventory to close their clients order, hold the order at their trading station until they see a match, or place the order on the open market to fend for it self.

Now forget all the manupulation, bull I'm 100% positive happens and start thinking like a business. I can post a very interesting letter from a retired MM when I find it, covering the manupulation factor, but for now we'll just practice a good business plan.

How can I (SCHB, NITE, ETC) opperate a profitable business. First I would need to have enough stocks in my portfoilio to generate enough fees and trading profits to create a good profit margin. Second I would shift that portfolio to the most profitable stocks as they become active. Third I would want to increase profits by buying more shares low and selling more shares high.

In TNOGs case the stock traded freely the first several months, then all watching started seeing a different trading pattern. This is when the MM became proactive! They started increasing profit margins by trading the stock as well as getting fees for transactions. IMO

After the continued increase in interest in the stocks up trend, the MMs (broker/dealers) purchased more inventory to swing with the expected future day trades. This took place during the longer than normal sideways trading pattern around MAY 8th and the following week's decline. IMO The retrace/run pattern was changed, with a large amount of accumulation, sideways.

So there we are, MAY 18th with the smallest daily volume in months, the market makers loaded up (+/-50 mill traded during 7 day accumulation)and a holding tank PR released, a pop and accumulation sideways again. If you look at the charts you will notice a sideways move after runs, instead of a retrace.

That is why I say MMs are accumulating and selling. When day traders buy in they sell out. You'll see that in the moves before MAY 9th. So IMO weather MMs are manupulating the PPs or not, the side ways accumulation channel in itself shows Market makers increasing their profits margins by trading inventory into the runs.

PS: the arron had a cross and is now in no trend mode until th up trend green line crosses the 30 line down. When it will indicated a short down trend change.