Meet Gene, a NASDAQ Market Maker Message Board

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Non-Tech : Meet Gene, a NASDAQ Market Maker

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To: Harbie who wrote (446)	8/7/2000 10:18:48 PM
From: gene_the_mm	Read Replies (1) of 1426

HARBIE... First, I cannot answer your question about CUSIP changes although I am sure that it would be a lengthy, complicated process. Second, there is nothing unusual about the scenario you described. If there were REAL buying pressure, the MM would be lifted out of the way on the offering. If you have HUGE buying pressure in ANY stock, no single MM is going to hold it down. What appears to have happened was sellers stepped in and sold into the buying. There is nothing illegal or unethical about that. How big is the float of this issue? I see situations like you just described all day in NMS stocks. Once momentum has started to 'wane' sellers tend to step in and attempt to lighten their positions. Do you realize that the move you describe on this particular stock is from $.60 to $.65 and would be almost a 10% move? Would it surprise you if a $60 stock moved to $65 on news and then pulled back? This is not meant to be offensive to you HARBIE so my apologies if I use your post to reinforce something to our readers. PEOPLE -- You need to keep profits in perspective. It is NOT about points in trading -- IT IS ABOUT PERCENTAGES! Most traders lose perspective of this when they trade pennies. Forgetting about 'conspiracy theories', if you can make 10% on a stock on news that is a GREAT move for a stock. Even 5%. What most penny stock traders forget is the size of the floats and the PERCENTAGE MOVES of these issues. The sellers that stepped in in that situation were all too aware of it I am sure. If I have missed some of your question forgive me. I certainly don't blame anyone for WANTING to hit the 'home run', but winning traders should take the 'singles and doubles' that the market gives them. Just my humble opinion. I hope that made sense and helped a little bit. Thanks for the great question HARBIE. All the best, -- Gene

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