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Pastimes : How to best deal with KOOKS at this web site

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To: Gottfried who wrote (953)7/24/1997 10:54:00 PM
From: Iceberg   of 1894
 
Gottfried, re: block trades...

> if I see trade 22 1/4 375,000 block I assume it was an institution. They are supposed to have superior knowledge.

Once I see news of a block trade - it's already HISTORY. How does that affect FUTURE stock prices - the real concern once the news is out?

Your assumption that institutions have "superior knowledge" is one that is probably widely shared by many investors/traders. But is that a valid assumption? Is there any evidence that institutional decisions are any better than the little guy's? Perhaps. But I'm not aware of it. I don't think anyone has a corner on the market.

>If lots of institutions are buying, I expect price to trend up. Now I worry about them taking a profit all at the same time, causing a large drop in price.

Here again, once you get the news - either way - it's too late to have caught the move, right? And that's assuming you know how to interpret the news. ---BTW, I'm totally clueless as to how to interpret block trade news. If you know any more than I do, then my hat's off to you. :-)

>My way of looking at block trades is probably simplistic and naive.

I agree.

But is there any better way of looking at it? I doubt it. My way of looking at it is even worse than yours, I'm sure!

>How's the garage door?

Too complex to contemplate. Bizarre.

> Would this be adequate for housing your Omega Trade Station?

Yes - maybe. For now, it's my wallpaper. Thanks!

Ice
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