Replies to post #29208 on ML Capital Group Inc. (MLCG)

[OBE]

This from "Confessions of an OTC-BB Market Maker"

Ed. Most of the shorting on the OTC is done by MMs

"Contrary to popular belief, MMs usually Do Not Cover in Fast Moving markets, either Up or Down, when they are short; They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but these are the most popular.

Some ways MM's entice sellers:

Run the stock up with a "tight spread" in a fast market, then "open up” the spread to slow down the buying interest.
After it has "cooled off" for a little while, lower the offer below the last trade (right after a small piece trades on the offer) then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread.
Once the selling starts, the MMs will walk it down quickly, by only making small prints on the way down with the tight spread.

Another way is by running the stock up in the morning, averaging up their short, then use the above technique to walk it down in the afternoon. Hopefully, after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize, thinking that the game is over."