Replies to post #13767 on Solar Wind Energy Tower Inc. (fka SWET)

[btm]

Thanks for posting link FINRA reports

[swingingRichard]

I am going to steal this, if that's okay, and use it on every board where some idiot claims the OTC ticker is going to have a short squeeze based on the short report.

[Dailygainz trading]

So you are saying they are shorting because the MM don't have shares "handy" to distribute to orders coming in.

Well that is pretty inconsistent with the level 3 montage on this stock the last couple weeks. I don't know if have taken the time to look at the broken down trades for each buy and sell. Your pretty much saying that they have been shorting at .0002 and covering and filling those "handy" orders at .0003. Wow if that's the case they have lost a ton of money recently.

Friday for example there was 9.9M buys and 14.8M sells. All 9.9M buys at .0003 and 14.8M sells at .0002 The trading activity makes no sense with your thesis. Also if it is following your thesis, MM are getting crushed and the demand is continuing to grow. Friday was also nothing compared to the week as a whole. A lot more buys at .0003 than anything when totaling up all the figures. In my opinion if your thesis was correct, all the buys this week at .0003 would have knocked them down and there would be no reason for that huge resistance at .0003 holding, it just makes no sense

Like I said, if your thesis is correct MM are getting crushed and for the first time Friday you saw on Level 2 one of the highest share count @ the ask of .0010 forming in a very very very long time.

The demand is growing here and I guess people won't believe the fact until they see price movement, but like I said when you add up each trading confirmation for the last 3 weeks, your thought on them shorting real "quick" and getting those "handy shares" lol, ya it makes no sense.

[Nomad505]

Your explanation does make sense.

Especially when you add in another layer to the theory.

How do the Market Makers make money? They are either working both sides of the book and trying to catch a small difference between the prices or they're basically taking commissions for each transaction.

Since SWET is working in a narrow range I think that it's likely to be the latter.

My broker has a small per share charge for routing to a specific ECN. As I understand it they are making money from routing my order using their "intelligent" routing. If they are in control of where the transaction is sent it doesn't cost any additional money.

Seems to me that a MM might short a stock temporarily in order to make sure that they have the transaction. Once they are in control they are free to use their resources to find the best deal on another ECN for themselves to make a small profit.

This also lowers their own risk since they don't have to maintain an inventory of shares to participate in the market.

Plus, it's always possible that they'll get lucky and cover at the lower price. That's the ultimate goal...