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Re: shall143 post# 782

Monday, 10/23/2006 9:28:12 AM

Monday, October 23, 2006 9:28:12 AM

Post# of 1979
Scroll down....this (by Bill Panetta) explains who the MM work for and a bit about what it means when certain ones are on the bid and ask...by the way...CLYP is Carlin Equities

Penny Stock Market Makers Who Are the Players in this Game
By Bill Panetta

Let Me Start off by saying this: Level 2 Does not have the same effect like it did 5 years ago except for OTCBB Stocks & Pink Sheet Stocks. What Do I mean By This? NASDAQ is all chart plays, level 2 has no meaning as it once did for NASDAQ Stocks, and too many games can be played now on level 2. Simply put if you don't know how to read the charts you will get killed on NASDAQ Stocks.

With all the changes on Level 2 Traders have been forced to learn TA, You could had a made a killing with level 2 before 2001 with out TA; I have witnesses that have proven this.

And when I make this comment I am talking about regular trading hours, after hour's different story. Bottom Line Level 2 does not have the same effect on NASDAQ Stocks that it did 5 years ago because of the New Super Soes Trading System being implemented in 2001 and along with 1 cent spreads, it was the worst thing NASDAQ ever did for traders IMO. The Traders from 5 yrs ago know what I am talking about.

Let's talk about the 2 exchanges where Level 2 has not changed and having level 2 is really important to your trading. I am talking about The OTCBB & PINKSHEET Markets.

If you learn how to read into Level 2 on the OTCBB & PINK SHEETS it will really enhance your trading. Let's break down the Market Markets.

There are 2 categories of Market Makers let's talking about the first one.

Retail Market Makers:

These are the market makers from very popular brokerage firms. They handle a lot of the order flow for small retail investors.

NITE: NITE

SCHB: Schwab

TDCM: TD Water House

SBSH: Smith Barney

MLCO: Merrill Lynch

ETRD: ETRADE

GSCO: Goldman Sachs: New Kid on the Block, very active lately.

This is the list that you really have master because these are the MARKET MAKERS that handle promotions, insider transactions also S-8 and CD Transaction.

CD: means Convertible Debentures they are loans the come due and get sold into the market by the loaning company.

There are lot market makers in this category so I will break it down to who are the most important: These are some of the more active MARKET MARKET MAKERS on the street:

FANC: major S- 8 player: if there is an S- 8 on a Stock most likely he will be there on the ask until it dries up

HDSN: major CD Seller Handles a lot CD transactions.



VIEW: love when he’s on the bid

DOMS

MAXM: one of favorites: smart money more like a trader than market maker replaces GNLN for now.

VERT:

CLYP: heavy seller if you see him on the bid it's unusual

HILL:

FLCR:

SACM: love when he’s on the bid

JEFF:

VFIN:

AYME:

STCS:

ABLE: like when he’s on the bid



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