Replies to post #273313 on Spongetech Delivery Systems Inc (fka SPNGQ)

[ozz112]

If anyone thinks the trading that has been going on recently is normal they are sadly mistaken.

It's not normal for trading involving market makers...they drive the price up and down in cycles..that is how they make a lot of money. What you see here is normal for grey market trading which does not have the influence of market makers. If someone new shows up here and is thinking of buying SPNG...they probably watch the stock for a day or two...look at the past couple weeks of trading history for highs, lows, volume, etc....just like most any of us would do...they then decide they want to buy........

Decision time...what price should we set for our limit order on a buy of SPNG...well, looking at the history...no one has been able to buy or sell below 4 cents in weeks, so it is useless to even try to buy at levels below that if I want the stock now. So naturally, the vast majority put a buy order in for around 4 cents...impatience enters if it isn't filled soon...maybe raising it to 4.5 cents...boom...I get filled. Same process if I want to sell, I look at trading patterns...Sure i could put a sell order limit in at 6 cents, but no one is buying at 6 cents if they can get it at 5 cents. The POINT being without MMs manipulating(making) the market, a stock without some sort of demand adjustment will trade like this. There has been no news or anything to adjust demand. Impatience can adjust demand...that is why we are seeing more trading right at 4 cents...this same impatience will likely bring the trading range down into the 3 cent level soon.