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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Marconi who wrote (18418)9/3/1999 11:08:00 PM
From: RockyBalboa  Read Replies (2) of 18691
 
Marconi, high spreads,

Well, that is not unusual in a dried-up market:
-MMs don't want to trade, as there is nothing to do, no news around no stocks to unload...
-ISLD is empty, no bidders on the ECNs active

Worse are the $1 to $2 spreads on mid to higher priced stocks, mostly fast moving relative illiquid internuts where one side of the ECNs often dries up and the MMs post either little quantities (100) or push up the asks first and then, when the ask is touched, step in.

Much worse is the problem that you do not get fills at posted quantities (only 100 shares or even nothing and your order will be posted on an ECN later) - this is the main problem.
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