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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Justa Werkenstiff who wrote (851)7/11/1997 7:54:00 PM
From: Kevin   of 42834
 
Tom and Lars,

Do you guys know what front running is? It sounds as if you might have front running confused with stock manipulation.

First let me say that I don't believe Brinker has any motive to front run as a primary action. However, I do beleive that Brinker would be foolish to hold onto something he knew would be going down should he issue a sell. I don't think there is anything wrong with it as long as it does not occur just for the sake of front running(sorry, i'm getting a little twisted).

With that said I will use Brinker as an example to explain front running. In front running Brinker's own buying or selling of a stock in order to move it is not what would cause the stock to move. If he were to move the price of a stock based on his own buying or selling that would be stock manipulation and then I would agree that it would take a hugh amount of money to do it.

In front running brinker would buy or sell whatever amount of shares he could afford and then let the "herd" move the price of the stock once he gives out a sell or buy signal. The herd would have enough financial clout to move the price of the stock one direction or the other so that whomever is front running will have plenty of time to trade his position in the opposite direction and profit.

You don't have to move the market with front running. you only have to move one stock to profit. You don't have to crush the market to make money and you don't have to crush a stock to make money. You would only have to move it a small amount for a short time to make money front running long or short.

I hope I have not confused the issue even more. My command of the language could be better.

CARLOS
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