Replies to post #5052 on Cabo Verde Capital Inc (CAPV)

[amadeus]

typically it seems like the algos are set on almost all of these for the mms to short almost every trade. they constantly sell shares they don't have, and recover for a profit at lower prices. its a very profitable way of 'making a market'.

the only thing that seems to keep them honest is when overwhelming buying volume, forces them to back off the ask. at which point they will back off the ask until the stock finally reaches a price point that stops the buying volume. and then they just reshort it again, knowing they'll be able to guide down the price typically for at least 3 days, while most traders are waiting for their funds to settle for any shares they sold, before being able to buy back.

so in many cases the actual share structure is irrelevant. because the MMs aren't trading real shares anyway. They're just printing shares to meet demand, that they are allowed to 'cover' later as needed.

as evidence that this is the typical norm on the OTC just look at most any chart. almost nothing has a sustainable trend up. the upward moves all happen fast and look like short squeezes because that's what they all are. because its pretty much the only way they let anything move up. when they are forced to move it up quickly by overwhelming volume.

you will also notice that typically mid day in the trading day,
when volume dries up, they take the opportunity move the price down, sometimes dramtically. when the price moves down, then all the shares they've shorted look nice and green on the books. whether they have covered or not.

no idea why this system has been allowed to exist.
except for the fact it makes the market makers enormous profits
and stacks the deck against the individual trader/investor.

[sawtrader]

If you read the trade data you will understand.
Earlier in the day there were 2 buys 50k and 60k at 0.0295.
That followed by sells at 0.0206 and under. Then followed by buys at 0.018 and 0245 near eod. Buy volume can be greater than sell volume, and yet close lower.

Algos are derived from the technicals(intraday 1,2,3,5,10,15,30,60,120minute, daily, weekly and monthly data, volume, time and interval and many other factors). The mm can input the variables and use several buddy mms with bank of naked shares at BID and ASK to satisfy the objectives of the mm for the stock for the day, week, month.
Each stock, each mm uses a varied set of variables, which makes trading very interesting if one can grasp the intricate ways to navigate the mind of the market maker and their use of the algo.