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Biotech / Medical : XOMA. Bull or Bear?
XOMA 24.88-0.2%Feb 6 9:30 AM EST

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To: Arthur Radley who wrote (11153)8/12/1999 6:49:00 PM
From: opalapril  Read Replies (1) of 17367
 
<<Shaking the tree>>

Agreed, Texas. A lot of SI posters here and there complain of market manipulation, short sellers, and other complicated conspiracies. I don't deny some of that stuff goes on occasionally -- very occasionally -- but it's nowhere near the level these message boards would have it. Not even close.

As for NASDAQ market makers, their annoying games are a bit more common -- artificially increasing spreads by a fraction more than they deserve, taking bids out of order (less common, now that there is a temporary crack down), and helping the price inch up or down to fill listed orders. That's why placing a stop-loss is not risk free. You can have your investment sold while you're in the bathroom on what looks for all the world like a random, anomalous price movement.

Today's late price action was anomalous but within the 30 day spread. It really does smell as if the market maker saw a large stop-loss sitting there and decided to take it out at the end of the day. He probably justifies it as an act of kindness -- "there was this sell order sitting there and I did my job by filling it." Coincidentally, of course, he now has more inventory to sell if the stock rises Monday or Tuesday.

If you've been long long (that is, for a long time) all of this ought to be irrelevant. You researched, you deliberated, you decided, you bought. Stick with it and watch closely for events, not rumors and not anomalous price movements.

And don't go to the bathroom for a week.

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