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Technology Stocks : Ascend Communications (ASND)
ASND 204.13-0.7%11:49 AM EST

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To: James Young who wrote (13263)9/17/1997 3:03:00 PM
From: Emile Vidrine   of 61433
 
Its just as easy to manipulate millions as thousands. Study the fundamental instinctive relationship between predator and prey, add a brain, and you have MMs phenomenon. The chase begins when the MMs observe a beautiful fat specimen with a minor injury. In the case of Asnd--acquisition integration, slightly lower earnings and product transition. Like a pack of hyenas, they begin to circle and converge upon their prey.
Remember,more than 90% of the volume of shares passes through the hands of the Market Makers. They are strategically located to encirlce and terrorize their prey. MMs are simply departments of the the large institutions such as ML, PW, Schwab etc. The MMs also have their contacts in the news media. There weapons are news leaks, intitutional downgrades initially coordinated with MMs drastically reduced bid-ask on low volume. The stock begins its decline. The prey is on the run. As the news leaks come out, many other predators (daytraders, small investors etc.) begin to converge on the prey.
The faster the chase downward the more the weaknesss of the prey are magnified by institutional downgrades and strategic news stories. The prey panics and begins dumping shares. The chase comes to a successful conclusion and the MMs have simply gouge themselves on the carcass of the helpless prey.

Emile
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