VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: I. N. Vester who wrote (3942)	8/25/1998 4:01:00 PM
From: John Curtis	Read Replies (1) of 27311

I.N.: As J.B. has pointed out, what's the use of monitoring every little up/down blip? Until VLNC comes through on their milestones then they'll wallow all around the place, with selling dominating the landscape. Just stay away from margin and make sure you've protected yourself. Patience is key at this point. Bottom Line? All we can do is wait for the next shoe to drop. So while we wait, smoke 'em if ya got 'em. Oh....here's some light reading on one aspect of how MM's support their market: Some ways MM's entice sellers; Run the stock up with a "tight spead" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread. Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon. Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over. Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short more. They usually try to cover after the frenzy is out of the market. Does the latter part of the above article ring any bells? Of course, this is just one persons opinion. Meanwhile, as I said, smoke 'em if ya got 'em. John~

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