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Re: sanbrunobaby post# 34

Thursday, 01/09/2014 4:48:36 PM

Thursday, January 09, 2014 4:48:36 PM

Post# of 42
I don't really trade in sub .05 stock. However the market maker shorting usually is for a short 3 days or less trade. However, what I have witnessed is some times when a big promotion starts they figure they can short and buy it back within a few days. Fairly innocent. But if the sell off that usually comes, does not come, well than they get desperate. Especially if the market is movie up.

In these situations they drag it out, they get a friendly market maker to sell them stock (short) to cover it and than start again. They keep rolling it around a number of friendly firms. I assure you this happens. There is even a term for this. "Parking a trade".

I watched on AWSL Reg SHO failed to deliver flags for 8 months during a long promo. The market maker would do as I described above, while than trying to discredit the company in every way possible.

I seen this very closely!

If you need more examples there out there.
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