Ascend Communications (ASND) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND)

ASND 226.10

+1.0%

Jan 30 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tom Hays who wrote (3939)	6/10/1997 9:38:00 PM
From: Glenn D. Rudolph	of 61433

The MMs have to step into the market to keep it orderly. If there weren't buyers lined up they have to buy and if they have to buy then the price will drop big. Todays Vol. was Big, I don't know what the float is on ASND, but I would say we had a big vol. day. If the price moves sharply up tomorrow then I would suspect the MM s marked it up. Tom, Most market makers are not extremely wealthy. They can only afford to hold so many shares of stock. I honestly do not know exactly how they work but wish I did<G> Most are employed by a large firm that does have pleanty of money to hold shares. I suppose there is a budget given to the MM by the firm but the MM can approach the firm to increase that budget on a day like today to be able to hold more shares. If that is the case, your senerio is right on. There is another possiblity. Momentum started down today and possibly the short sellers sold short big time on every uptick. This forced the stock price down. The short sellers already had a good profit close to closing and it is possibly they covered their positions (at least many of them) at 3:55. I tried to day trade some shares today believing ASND would move back up once the street figured the selling was overdone. I was wrong and that happens often:-( However, I waited until the last minute to sell the shares I could not afford to hold overnight. Buyers swarmed in during that last 5 minutes. The bid moved up almost 1/2 point during those five minutes and I believe this was caused by the shorts covering at market. The street may get its head screwd on straightly by tomorrow AM and start the morning by entering orders to buy at market. Thus, an AM pop may have nothing to do with the MM. Either scenerio is possible. Now if we only knew which was correct<G> Glenn

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next