Thursday, October 26, 2000 9:06:17 PM
10 Red Flags of Market Maker Manipulation (MMM) or Maintaining an Orderly Market
Now first let me give a few principals as my underlying basis on a few market principles within this communication as a prelude to what someone was asking me for my opinion. Especially since a few were wanting my opinion or view. The following happens a lot in CBQI's trading log history since December 8, 1999. Oh and just for what it is worth, in my experience, Market Makers typically do not carry inventories in OTCs, especially thinly traded securities. When they do carry inventories the stock rises so they can sell their inventories. However, the following are my 10 Red Flags for MMM (Market Maker Manipulation) I have observed since I have been trading:
Cross-Trading is the control by one or only a few brokers who match purchases and sales to drive up or down the stock price which ever way benefits them. According to Forbes' 07/29/96 Article on Market Makers this is the hallmark of penny stock manipulation … As an example to this there was a 1200 cross Friday at 11:23, which I was tied up and did not commentary on but these two post demonstrate the double prints that occur in a trading log Ragingbull CBQI Post #9583 & CBQI Post #9601
Boxing where a broker will position himself on both the ask and the bid, which is the heart of penny stock manipulation according to Business Week's 1996 Article: The Mob on Wallstreet eliminating competing market makers and allowing only cooperating brokers to bid on stocks, the result is a kind of rigged auction. As an example of this the following these three posts show an example of "Boxing" Ragingbull CBQI Post #9567, 9602 & 9603
Stock Call Signals which appear to be small share blocks of stock typically 100, 200 and 300 to get a supply of stock another MM or broker to help with an "Oversell", which is the amount of shares sold by a Market Maker that were not bought. Market Makers buy on the bid and selling on the ask, which is an automatic buy low sell high advantage for them same as being the house in a casino. As an example of this the following these three posts show an example of "Stock Calls" Ragingbull CBQI Posts #9594, 9610 & 9611.
Locking is when the MM on the ask moves to the bid in an attempt to back the bidding MM off to drive the price of the stock down. Thus by attacking the bid, both the bid and the ask are the same price. Sometimes a stock will stay locked for sometime if the bidding Market Maker does not move off the bid wanting more stock. Last time it Locked was on 1-03-2000 here is the log … Ragingbull CBQI Post #9263 The morning starts out at 07:30:51AM with a market (Bid-Ask) of 0.750-0.781 25x25 (a 3 cent spread) then at 09:40:56AM it gets another MM on the 0.750-0:781 25x25 quote. Then the short lived rapid fire of trades begin 09:58:11 1000 0.75
09:58:12 1500 0.75
09:58:16 500 0.75
09:58:16 1500 0.75
09:58:17 0.750-0.750 25x25
09:58:24 2500 0.75
09:58:25 0.719-0.750 25x25
09:58:35 2500 0.75
09:59:36 0.719-0.830 25x25 to finish up with an 11 cent spread in 90 seconds once the bidding MM backed off.
Nothing Done / No Fills is applied to your order and market makers trade ahead of you or flat out wont fill no matter what regardless of complaints, but if persistent will eventually get a fill as demonstrated in these two posts. Ragingbull CBQI Post #8127 & 8169 Plus here is a post on the time frame of not getting good delivery on CBQI stock Ragingbull CBQI Post # 9692
Buy orders at the Ask Filled on the bid, which is used to show weakness in the trading thus an investor's buy is shown as an investor sell as demonstrated in Ragingbull CBQI Post #9817
Excessive spreads between bid and ask prices; as demonstrated in red flag #4 it is also demonstrated on October 4, 2000 at 10:14:57 0.656-0.813 25x25 a 15 cent spread that is a 20% spread on the ask where it remained the rest of the day as shown in Ragingbull CBQI Post #9263
Oversell grows daily, which is where the market makers sell more stock than they have bought. 10-05-2000 T&S Report 70% Oversell according to Best Effort Ragingbull CBQI Post #9531 & 10-06-2000 T&S Report 31% Oversell according to best effort Ragingbull CBQI Post #9681
The Churn is market makers trading where most of the volume (59% according to Forbes' 07/29/96 Article on Market Makers) is among themselves. This is demonstrated in the trading around 11:00am on 10-04-2000 in Ragingbull CBQI Post #9353 and even earlier on 09-26-2000 in Ragingbull CBQI Post #8138
FUDs are posters (Usually anonymous posters) posting deliberate false and misleading rumors (rumor-mongering) in an attempt to deflate the stock price by instilling Fear, Uncertainty, & Doubt. (Could these be Market Maker or short voices) and of course attack with the same nonsense such as myself being a scamster as posted in Ragingbull CBQI Post #9223. But if you track the posting to the trading you will make an interesting observation as in post Ragingbull CBQI Post #10319 & 10320 However, a little history on Jetfuel is on Ragingbull CBQI Post #9257 & part 2 9260. Next is an interesting observation post on Stock_Whiz's arrival in Ragingbull CBQI Post #10321 with even more background observations in Ragingbull CBQI Post #9255 but according to Stock Whiz I am doing more harm than good tracking the stock and posting it. ??? I have to ask harm to who, exposing possible MMM by my commentary of the trading. Exposing what I feel is a wrong doing with an underlying basis to what I post. Next is an old Professional basher that always seems to show up when HRZG is on the bid comes out of retirement to make 7 posts then leaves and hasn’t posted since … hmmm… Ragingbul Post #9179 Oh a another just pop in and pop out Ragingbull CBQI Post #10326 who was posting along with and chartman that evaded the thread when MASH was on the bid.
These 10 red flag tactics, I have watched in CBQ since December 1999 and have tried documented each. Most of this was documented under Georgia_Bard from April to I believe July that has gotten deleted. Also the Market Maker reports were stopped in April, which I complained about. Here are my three letters of concern Short Selling and Naked Shorting, Selective Disclosure & Insider Trading, & on 8-10-2000 at 9:49PM Market Maker Report Changes. I believe the reason was because the MMs discovered they were actually reporting what they were doing. The OTC is unregulated and thus they do not have to fill an order or report a short position.
OTC Shorting Note: Someone once asked me about shorting an OTC. Well, we all know it is suppose to be illegal but in a phone conversation with a shorter, I was informed Bruno with Farsight was who he used. The gentleman would Front Load then Pump(Stretch the facts positive) Dump into the hype volume then Short once the momentum backed off and if necessary Bash on being lied to by the company. This is why I wrote the P&D vs S&D. Of course I am probably the focus of a character assassination by this Florida shorter. (What else is new?) BTW I had an account with Farsight and I did not know you could short an OTC through them.
Oh and to complain about it to NASD when you flat see this going on you get the following even when you are using the MM Report the OTC BB use to put out. I made a similar post to this one on April 6, 2000 and it is deleted so I will post this message on several boards. Anyway Listless tried to do what we are suppose to do and complain to NASD. Here is what happened…
April 1, 2000 A CBQI poster stated, I entered a complaint with the NASD regarding this matter.Ragingbull CBQI Post #3505. However according to the transfer agent’s numbers on August 25, 2000 only about 259,217 cannot be accounted for an thus has to be the dilution factor of the filed 144 through June 30, 2000. Sort shoots a hole in what he was told.
April 3, 2000 this same poster posts, … I just got a call from the NASD. Silicon Investor Post
April 7, 2000 (day after the 3100 share $3.00 walk down) this same poster posted, I spoke with a market regulator from the NASD last week regarding CBQI / the regulator threw the last four or five 144's back at me. / The Reg. didn't seem interested to hear the specifics. Silicone Investor CBQI Post
An example of red flag trading: Another interesting scenario is WDCO sold for the longest time this last week (first week in October). Especially on the October the 5th 2000 and boxed (2) the stock prior to noon as I showed in the T&S For Oct. 5, 2000 Ragingbull CBQI Post #9531 and note when the FUDs (10) show up. WDCO remains boxed (2) the rest of the day selling stock.
Then on the open of the 6th WDCO boxes (2) again Ragingbull CBQI Post #9567 by 10:35 WMIN is now boxing (2) with HILL on the bid Ragingbull CBQI Post #9598. Then WMIN unboxes the stock but remains on the bid as WDCO hits the Ask again in an possible attempt to hold it down Ragingbull CBQI Post #9607 if you follow my commentary when it hit a buck after numerous stock calls WDCO got help at 10:52 AM by a Market Maker Wall consisting of NITE, HRZG, MASH & PGON on the ask at $1.03 as HILL jumps on the bid at $1.00 as per Ragingbull CBQI Post #9608. Up until 10:55AM fills and stock calls (3) erupted Ragingbull CBQI Post #9610 By 10:57 HILL flips from the bid to the ask Ragingbull CBQI Post #9614 then single handily HILL drops the ask down on 9,100 shares to .875 by 11:03. The oversell (8) was a stout 41,900 on a 100K volume half day as posted in Ragingbull CBQI Post #9622. Was this one of the tactics for manipulation or an orderly market? The stock had little activity after this until 2:20PM when WDCO boxed (2) it again Ragingbull CBQI Post #9649 MASH stepped on the Ask with him by 2:29 PM Ragingbull CBQI Post #9653. Now that the stock had little activity a canceled shows up on a 1200 cross trade (1) earlier in the day Ragingbull CBQI Post #9678 . Ended up closing with a 11 cent spread 12% spread (7) .82x.93 at the bell Friday Ragingbull CBQI Post #9681
The on Monday morning MASH stepped off the Ask leaving WDCO alone boxing (2) Ragingbull CBQI #9810 until HILL takes the Ask leaving WDCO alone on the bid Ragingbull CBQI Post #9814 upon which orders on the Ask were being filled on the bid (6) Ragingbull CBQI Post #9817 then just after lunch WDCO begins taking the ask down Ragingbull CBQI Post #9824 then just after 2 o'clock MHMY got on the Ask with HILL and WDCO still on the bid Ragingbull CBQI Post #9851 which I then predicted a stock call (3) and it came while I was posting Ragingbull CBQI Post #9852 and the ended up 6% Undersell Ragingbull CBQI Post #9861 but people were posting they finally got their fills (5) Ragingbull CBQI Post #9857 & 9859
Also when WDCO had it Boxed, a 100 share call came out after every fill until he got help. Check the trading on Friday October 6, 2000 that was proof of the MM stock call signals (3) to me.
Anyway, though I am bored and have converted trading activity to a Bullfight it is exactly what it is to be honest. I follow the trading daily and post it as best as I can keep up with it for a documented proof on line.
Also now do you see why I am attacked by every evil on the Internet and accused of every wrong doing in the world. You do not make posts like this and NOT take any heat by the types that live in this reality. (BTW I called it and I was right )
Are small investors merely creatures of manipulation?
Gary Swancey
Now first let me give a few principals as my underlying basis on a few market principles within this communication as a prelude to what someone was asking me for my opinion. Especially since a few were wanting my opinion or view. The following happens a lot in CBQI's trading log history since December 8, 1999. Oh and just for what it is worth, in my experience, Market Makers typically do not carry inventories in OTCs, especially thinly traded securities. When they do carry inventories the stock rises so they can sell their inventories. However, the following are my 10 Red Flags for MMM (Market Maker Manipulation) I have observed since I have been trading:
Cross-Trading is the control by one or only a few brokers who match purchases and sales to drive up or down the stock price which ever way benefits them. According to Forbes' 07/29/96 Article on Market Makers this is the hallmark of penny stock manipulation … As an example to this there was a 1200 cross Friday at 11:23, which I was tied up and did not commentary on but these two post demonstrate the double prints that occur in a trading log Ragingbull CBQI Post #9583 & CBQI Post #9601
Boxing where a broker will position himself on both the ask and the bid, which is the heart of penny stock manipulation according to Business Week's 1996 Article: The Mob on Wallstreet eliminating competing market makers and allowing only cooperating brokers to bid on stocks, the result is a kind of rigged auction. As an example of this the following these three posts show an example of "Boxing" Ragingbull CBQI Post #9567, 9602 & 9603
Stock Call Signals which appear to be small share blocks of stock typically 100, 200 and 300 to get a supply of stock another MM or broker to help with an "Oversell", which is the amount of shares sold by a Market Maker that were not bought. Market Makers buy on the bid and selling on the ask, which is an automatic buy low sell high advantage for them same as being the house in a casino. As an example of this the following these three posts show an example of "Stock Calls" Ragingbull CBQI Posts #9594, 9610 & 9611.
Locking is when the MM on the ask moves to the bid in an attempt to back the bidding MM off to drive the price of the stock down. Thus by attacking the bid, both the bid and the ask are the same price. Sometimes a stock will stay locked for sometime if the bidding Market Maker does not move off the bid wanting more stock. Last time it Locked was on 1-03-2000 here is the log … Ragingbull CBQI Post #9263 The morning starts out at 07:30:51AM with a market (Bid-Ask) of 0.750-0.781 25x25 (a 3 cent spread) then at 09:40:56AM it gets another MM on the 0.750-0:781 25x25 quote. Then the short lived rapid fire of trades begin 09:58:11 1000 0.75
09:58:12 1500 0.75
09:58:16 500 0.75
09:58:16 1500 0.75
09:58:17 0.750-0.750 25x25
09:58:24 2500 0.75
09:58:25 0.719-0.750 25x25
09:58:35 2500 0.75
09:59:36 0.719-0.830 25x25 to finish up with an 11 cent spread in 90 seconds once the bidding MM backed off.
Nothing Done / No Fills is applied to your order and market makers trade ahead of you or flat out wont fill no matter what regardless of complaints, but if persistent will eventually get a fill as demonstrated in these two posts. Ragingbull CBQI Post #8127 & 8169 Plus here is a post on the time frame of not getting good delivery on CBQI stock Ragingbull CBQI Post # 9692
Buy orders at the Ask Filled on the bid, which is used to show weakness in the trading thus an investor's buy is shown as an investor sell as demonstrated in Ragingbull CBQI Post #9817
Excessive spreads between bid and ask prices; as demonstrated in red flag #4 it is also demonstrated on October 4, 2000 at 10:14:57 0.656-0.813 25x25 a 15 cent spread that is a 20% spread on the ask where it remained the rest of the day as shown in Ragingbull CBQI Post #9263
Oversell grows daily, which is where the market makers sell more stock than they have bought. 10-05-2000 T&S Report 70% Oversell according to Best Effort Ragingbull CBQI Post #9531 & 10-06-2000 T&S Report 31% Oversell according to best effort Ragingbull CBQI Post #9681
The Churn is market makers trading where most of the volume (59% according to Forbes' 07/29/96 Article on Market Makers) is among themselves. This is demonstrated in the trading around 11:00am on 10-04-2000 in Ragingbull CBQI Post #9353 and even earlier on 09-26-2000 in Ragingbull CBQI Post #8138
FUDs are posters (Usually anonymous posters) posting deliberate false and misleading rumors (rumor-mongering) in an attempt to deflate the stock price by instilling Fear, Uncertainty, & Doubt. (Could these be Market Maker or short voices) and of course attack with the same nonsense such as myself being a scamster as posted in Ragingbull CBQI Post #9223. But if you track the posting to the trading you will make an interesting observation as in post Ragingbull CBQI Post #10319 & 10320 However, a little history on Jetfuel is on Ragingbull CBQI Post #9257 & part 2 9260. Next is an interesting observation post on Stock_Whiz's arrival in Ragingbull CBQI Post #10321 with even more background observations in Ragingbull CBQI Post #9255 but according to Stock Whiz I am doing more harm than good tracking the stock and posting it. ??? I have to ask harm to who, exposing possible MMM by my commentary of the trading. Exposing what I feel is a wrong doing with an underlying basis to what I post. Next is an old Professional basher that always seems to show up when HRZG is on the bid comes out of retirement to make 7 posts then leaves and hasn’t posted since … hmmm… Ragingbul Post #9179 Oh a another just pop in and pop out Ragingbull CBQI Post #10326 who was posting along with and chartman that evaded the thread when MASH was on the bid.
These 10 red flag tactics, I have watched in CBQ since December 1999 and have tried documented each. Most of this was documented under Georgia_Bard from April to I believe July that has gotten deleted. Also the Market Maker reports were stopped in April, which I complained about. Here are my three letters of concern Short Selling and Naked Shorting, Selective Disclosure & Insider Trading, & on 8-10-2000 at 9:49PM Market Maker Report Changes. I believe the reason was because the MMs discovered they were actually reporting what they were doing. The OTC is unregulated and thus they do not have to fill an order or report a short position.
OTC Shorting Note: Someone once asked me about shorting an OTC. Well, we all know it is suppose to be illegal but in a phone conversation with a shorter, I was informed Bruno with Farsight was who he used. The gentleman would Front Load then Pump(Stretch the facts positive) Dump into the hype volume then Short once the momentum backed off and if necessary Bash on being lied to by the company. This is why I wrote the P&D vs S&D. Of course I am probably the focus of a character assassination by this Florida shorter. (What else is new?) BTW I had an account with Farsight and I did not know you could short an OTC through them.
Oh and to complain about it to NASD when you flat see this going on you get the following even when you are using the MM Report the OTC BB use to put out. I made a similar post to this one on April 6, 2000 and it is deleted so I will post this message on several boards. Anyway Listless tried to do what we are suppose to do and complain to NASD. Here is what happened…
April 1, 2000 A CBQI poster stated, I entered a complaint with the NASD regarding this matter.Ragingbull CBQI Post #3505. However according to the transfer agent’s numbers on August 25, 2000 only about 259,217 cannot be accounted for an thus has to be the dilution factor of the filed 144 through June 30, 2000. Sort shoots a hole in what he was told.
April 3, 2000 this same poster posts, … I just got a call from the NASD. Silicon Investor Post
April 7, 2000 (day after the 3100 share $3.00 walk down) this same poster posted, I spoke with a market regulator from the NASD last week regarding CBQI / the regulator threw the last four or five 144's back at me. / The Reg. didn't seem interested to hear the specifics. Silicone Investor CBQI Post
An example of red flag trading: Another interesting scenario is WDCO sold for the longest time this last week (first week in October). Especially on the October the 5th 2000 and boxed (2) the stock prior to noon as I showed in the T&S For Oct. 5, 2000 Ragingbull CBQI Post #9531 and note when the FUDs (10) show up. WDCO remains boxed (2) the rest of the day selling stock.
Then on the open of the 6th WDCO boxes (2) again Ragingbull CBQI Post #9567 by 10:35 WMIN is now boxing (2) with HILL on the bid Ragingbull CBQI Post #9598. Then WMIN unboxes the stock but remains on the bid as WDCO hits the Ask again in an possible attempt to hold it down Ragingbull CBQI Post #9607 if you follow my commentary when it hit a buck after numerous stock calls WDCO got help at 10:52 AM by a Market Maker Wall consisting of NITE, HRZG, MASH & PGON on the ask at $1.03 as HILL jumps on the bid at $1.00 as per Ragingbull CBQI Post #9608. Up until 10:55AM fills and stock calls (3) erupted Ragingbull CBQI Post #9610 By 10:57 HILL flips from the bid to the ask Ragingbull CBQI Post #9614 then single handily HILL drops the ask down on 9,100 shares to .875 by 11:03. The oversell (8) was a stout 41,900 on a 100K volume half day as posted in Ragingbull CBQI Post #9622. Was this one of the tactics for manipulation or an orderly market? The stock had little activity after this until 2:20PM when WDCO boxed (2) it again Ragingbull CBQI Post #9649 MASH stepped on the Ask with him by 2:29 PM Ragingbull CBQI Post #9653. Now that the stock had little activity a canceled shows up on a 1200 cross trade (1) earlier in the day Ragingbull CBQI Post #9678 . Ended up closing with a 11 cent spread 12% spread (7) .82x.93 at the bell Friday Ragingbull CBQI Post #9681
The on Monday morning MASH stepped off the Ask leaving WDCO alone boxing (2) Ragingbull CBQI #9810 until HILL takes the Ask leaving WDCO alone on the bid Ragingbull CBQI Post #9814 upon which orders on the Ask were being filled on the bid (6) Ragingbull CBQI Post #9817 then just after lunch WDCO begins taking the ask down Ragingbull CBQI Post #9824 then just after 2 o'clock MHMY got on the Ask with HILL and WDCO still on the bid Ragingbull CBQI Post #9851 which I then predicted a stock call (3) and it came while I was posting Ragingbull CBQI Post #9852 and the ended up 6% Undersell Ragingbull CBQI Post #9861 but people were posting they finally got their fills (5) Ragingbull CBQI Post #9857 & 9859
Also when WDCO had it Boxed, a 100 share call came out after every fill until he got help. Check the trading on Friday October 6, 2000 that was proof of the MM stock call signals (3) to me.
Anyway, though I am bored and have converted trading activity to a Bullfight it is exactly what it is to be honest. I follow the trading daily and post it as best as I can keep up with it for a documented proof on line.
Also now do you see why I am attacked by every evil on the Internet and accused of every wrong doing in the world. You do not make posts like this and NOT take any heat by the types that live in this reality. (BTW I called it and I was right )
Are small investors merely creatures of manipulation?
Gary Swancey :=) Gary Swancey
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
