No, charts are made by daily prices and volumes.
Market makers (MMs) are dealers who are directly responsible for stock transaction. For example, I sell HNLY, MMs buy, and when you buy HNLY, MMs sells. MMs make the most money from the manipulation of OTC BB stocks, not the spread which has been limited by SEC. Only purpose of MMs is to make money, otherwise they don't want to market this type of stock if they can't make enough money. Basically, MMs want to buy at low and sell at high like us!
One of MM tricks is to manipulate shareholders. For example, when they looked HNLY chart, they saw HNLY has never run up more than $0.50 this morning. They believe that they the stock price will be down soon, then they short the stock by selling the stock they don't have, because they have three days to settle(send the stock certificates to transfer agent before Monday for today's selling). However, they found the stock are so tight this afternoon, they can't borrow any more. Then they send one guy (they are hired by market makers, $2,000-4,000/month) or more to here to bash the stock hoping they can hammer down the price. I believe somebody will show up here very soon to bash the company and the stock!
If this is not working, more people are buying. They have to cover their positions by buying more stocks back, then the price goes higher.
If I am wrong, please correct!
James |
