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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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To: dvdw© who wrote (3634)7/27/2008 12:49:03 PM
From: Hawkmoon  Read Replies (1) of 5034
 
Left unsaid in all of this is that the best way to locate stock is for the B/D's to PROPERLY reflect supply/demand by raising prices of the issue where shares are "unlocked" by profit taking from longs.

In sum, the mmkrs were SUPPOSED to support those stocks during bad times, by building inventory as prices declined and, thereby, covering any short positions they had exposed themselves to during the previous excessive demand cycle.

They certainly have no qualms about running up prices when they have excessive inventory and demand suddenly increases. But when that demand decreases they also have no qualms about dropping the price, and INCREASING their selling to the public by quickly reselling any shares that come into their inventory, thereby increasing the downside pressure.

If they had covered their short positions, and assisted in creating a new "price discovery" process, rather than trying to utterly destroy the price of the equity they're tasked with making a market in, there wouldn't be a need for a Reg SHO list.

I hold a stock on the Reg SHO list (QTWW). The short interest has DOUBLED within the past 40 days that it's been on the Reg SHO list.

nasdaq.com

Now tell me the SEC is serious about resolving the Reg SHO list when the mmkrs have done nothing to resolve the FTDs in that issue.

That, combined with the fact that OSTK is back on the Reg SHO list is indicative that mmkrs continue to dig themselves deeper into the hole they've made for themselves. Maybe they are trying to create their own little "crisis" in hopes the Fed bails them out as well.

Well.. any politician that fails to push the SEC on resolving this counterfeiting of shares in our markets is not going to get my vote.

Hawk
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