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Microcap & Penny Stocks : Dollar and Under Sleeper Stocks

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To: Greg Wilder who wrote (1740)	11/6/1997 11:37:00 PM
From: Ga Bard	Read Replies (3) of 8835

Well I believe a New ERA in internet trading has begun. Market Makers are a bit upset that the internet has created some problems for them with all this momentum wave trading. In my Opinion they have NOW declared WAR. With the new NASD rule to fill between the bid and the ask the professional market makers are using that to take down a stock price. Example: The bid is .25 & the ask is .50. A market maker can now short at the .375 market markers selling to investors at the midpoint. Thinking they are getting a deal investors sit back and go ALRIGHT! They get it at .375 thinking they have just outsmarted the market makers. Yeah right, In fact when the Market maker decides they have a substainal short position they merely start filling at the midpoint. Since the market the MMs establish buying at the midpoint redefines the ask giving them an absolute advantage on shorting. The shareholders now dicate the ask by buying midpoint so the market markers can now drop the ask to the last sell. Now the price drops on buying so in a sense the buying at midpoint actually the investors buying are shorting the stock price. Well when the ask drops the MMS readjust and drop the bid. Good grief double impact. This continues as shareholders continue to buy in at the midpoint. Then they drop the ask again and soon to follow is the bid. now it is at an ask of .25 and a bid of .125. Internet folks quickly see the plummet in price and sell to cut their losses. The MM are then able to cover the short positions making TON of money when actually not one was selling to begin with when it all started to happen. I have watched this happen all day today and all weekas a matter of fact. One reason is the midpoint does not cause the Market makers to raise the price. Take a .09 - .10 stock they short sell at .10 and cover at .09 for a 10% profit across the board. Now if they can get a market sell of .08 then they make 20%. Now the Market Maker which makes the market can now let the investors buying in at the mispoint define the ask price so now the market makers can just take the ride to the bottom on the mid point buying. Market markers know when people sell, they rarely sell between the bid and the ask so the margin is in fact in their favor. The only way I was advised to stop this is to not place limit orders at the mid point in buying but place sell orders at the midpoint thus bringing up the bid and limit to buy at the ask causing the ask to raise. This is exactly the opposite of what is happening now. Please understand you cannot beat a Market Marker at their own game. Market Markers set the market and investors buying in can now effectively affect the price buying in at the midpoint. Here is a perfect wxample: WNCR - Transaction Log 09:05:39 8 ................... 0.687 - 0.937 .... 12:11:02 8 ..... 1000 .. 0.930 ... Buy 09:56:55 8.....10000 .. 0.812 ... Buy .... 12:12:24 8 ..... 1500 .. 0.900 .. Buy 10:00:29 8 .... 7000 .. 0.812 ... Buy .... 12:13:05 8 ..... 1500 .. 0.900 ... Buy 12:01:12 8 ... 15000 .. 0.937 ... Buy .... 12:15:05 8 ..... 3000 .. 0.870 ... Buy 11:14:31 8 ................... 0.750 - 0.937 .... 12:16:45 8 ..... 5000 .. 0.937 ... Buy 11:25:26 8 .... 2000 .. 0.937 ... Buy .... 12:17:04 8 ..... 5000 .. 0.875 ... Buy 11:31:53 8 .... 2000 .. 0.937 ... Buy .... 12:20:38 8 ..... 1000 .. 0.930 ... Buy 11:33:30 8 .... 3000 .. 0.812 Sell ? .... 12:22:00 8 ..... 1000 .. 0.930 ....... Buy 11:37:53 8 ................. 0.812 - 0.937 ... 02:13:03 8 ... 20000.. 0.900 ... Buy 11:38:41 8 .... 1500 .. 0.930 ... Buy ... 02:13:37 8 ... 20000.. 0.870 ... Buy 11:42:14 8 ..... 5000.. 0.930 ... Buy ... 02:13:53 8 ... 20000.. 0.900 ... Buy 11:42:20 8 .... 6500.. 0.937 ... Buy ... 02:30:34 8... 20000.. 0.870 ... Buy 11:43:04 8 .... 6500 .. 0.875 ... Buy ... 02:30:47 8 ... 20000.. 0.900 ... Buy 11:44:04 8 ..... 1000 .. 0.900 ... Buy ... 02:33:37 8 .............. 0.812 - 0.875 11:44:04 8 ..... 1000 .. 0.900 .. Buy ... 02:36:50 8 .... 1000.. 0.870 ... Buy 11:46:43 8 ....... 500 .. 0.930 ... Buy ... 02:36:50 8 .... 2500.. 0.870 ... Buy 11:58:33 8 ..... 7000 .. 0.930 ... Buy .... 02:37:21 8 .............. 0.437 - 0.875 12:00:38 8 ..... 5000 .. 0.870 ... Buy .... 02:37:35 8 .... 1200 .. 0.870 ... Buy Other stocks this is happening to is NETZ, IKAR (This one really got NAILED totally today on midpoint buying & shorting), and a few more. The only thing that saved IKAR was buying at the ask which took it back up from $1.28 to $1.62 - $1.71. Unbelieveable at what I am watching happen here this week. Basically the MMs are sending out a message either buy at the offered ask or pay the piper. I can produce numerous stocks that when solid buying came in the price fell and not one sell. But because of the midpoint this stock price fell an eventually the price plummeted on very few sells. Since most investors do not watch trading logs they really have no idea what they are doing to their investment buying at the midpoint. The MMs are treating midpoint buying as a sell even if it is a buy. This is just my opinon however I can show you many stocks that this happened to today. Minimal selling but major midpoint buying and BOOM the stock got nailed. I could be totally wrong and off base here but the trading logs clearly show what I am saying. GaBard

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