The 56 Point TA; Charts With an Attitude Message Board

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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: Michael L. who wrote (9122)	12/11/1997 9:44:00 AM
From: ivan solotaroff	Read Replies (1) of 79352

Michael, The open price is the same as an intraday price in that it is the result of the competition between bid and ask; MMs don't really PUT prices at anything, they price them to strike a balance between the spread that will both reflect the temporary reality of the market and ensure them a roughly equal balance-sheet from moment to moment. Unless they're corrupt sleazos, that's how they make their money. It's the market itself that's pricing the stock; the MMs are merely interested parties in the market. VVUS gapped all the way down based on news; it was an over-reaction, which is a typical inefficiency of the market, and is what in fact makes for profit opportunities. I hope you didn't buy VVUS yesterday, even if you are at a profit at the moment. Stocks that gap down that much are as dangerous as you can get without taking on much leverage. I tried one once and boy did I get burned. Ivan

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