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Technology Stocks : Cymer (CYMI)

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To: mauser96 who wrote (7579)10/31/1997 2:39:00 PM
From: Mr. Aloha  Read Replies (1) of 25960
 
(50) 1,000 share trades has more impact than (1) 50,000 share trade.

The Market Maker get's nervous when a bunch of consecutive sell trades comes though. They start to lower the bid because they might not be selling those recently sold shares to a new buyer at the time. They could be holding them in their account. They need to stay on top of the market and don't like to left long or short. They will move quickly to avoid a bad situation. On the 550 down day the price fell immediately to something like $21-22. With such a heavy percentage of sells to buys, the MM dropped the price to a point that others bought or seller's freaked. In the meantime a 50,000 share trade might have bought and another 5,000 share bought. That would mean that technically the day was positive (green) because there was more accumulation than distribution. :-)

Aloha
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