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Strategies & Market Trends : InvestRight - Short Term Trading St -- Ignore unavailable to you. Want to Upgrade?

To: Ray Tarke who wrote (347)	10/4/1998 10:09:00 AM
From: Jeffrey L. Henken	Respond to of 939

It's nearly impossible to prove that market makers are shorting a stock. Even if you can, how do you stop them? There are ways to deal with it but it takes a concerted effort and help from the company whose stock you own. You see the company itself should know who it is that making a market in your stock very well indeed. They know that many of these firms are attempting to take advantage of current trading conditions. We are still stuck in a very bad market, especially for OTC BB stocks. We know that the market makers really don't care about any company's actual prospects because they are going to attempt to pad their profits anyway. It's not something personal to them, it's business. So if you had level II software you could watch to see who was filling which trades and at what price and speculate at exactly what they have to gain. You can even try to stop this activity by having as many people as possible call their certs but it's not easy. Read this post for more information: Message 5905294 So for the sake of argument lets say we know there is shorting going on. Lets hope the stock market firms up soon and we start to see some strength return to OTC BB stocks and more investors will buy on the next move up. Market makers can skim a little extra off the spread as a stock rises too. You just need the shorting to stop because they fear they will eventually have to cover. InvestRight Regards, Jeff