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Technology Stocks : Dell Technologies Inc.

DELL 138.09

-1.8%

1:04 PM EST

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To: Eddie Kim who wrote (72902)	10/19/1998 3:23:00 PM
From: Chuzzlewit	Read Replies (2) of 176387

Eddie, you said You make it sound that since no one can explain it to you then it could not possible happen. I think that's a bit of an overstatement. A human explanation for a phenomenon is not required in order that the phenomenon exist. But it is required in order for me to believe the explanation of the phenomenon. Let me put this another way. The fact that stock prices exhibit certain behaviors should not be confused with theories as to why those behaviors exist. The acceptance of the explanation requires proof. For example, plants tend to grow towards sunlight. Now some may believe that it is due invisible rays emanating from the sun which draw the plant in that direction. Still others believe that the movement is due to the accumulation of a plant hormone which tends to elongate cells on the shady side. The fact that plants bend cannot be taken as evidence for either theory. I believe that it is unnecessary to posit that market makers are manipulating the market to explain why so many options expire worthless. I think it is sufficient to explain that on the basis of efficient markets and random walks. Others believe that the behavior is due to the active intervention of market makers or other abnormal interventions. Since they propose the hypothesis th onus is on them to support it with some sort of data. So far, they cannot. Years ago a lot of people believed the world was flat. After all, nobody could see any curvature. They also believed that diseases were caused by ill humors or demons. None of these ideas withstood the crucible of objective proof, and when scientific methods were brought to bear, these ideas rapidly fell away because there was no evidence to support them. But the issue of market makers hasn't even progressed to the point of collecting evidence in favor of that proposition. All I asked is for somebody to provide the motive in the form of demonstrating how it could be done profitably. Nobody has been able to demonstrate this to me. I hope this helps you to understand the difference between acceptance of ideas on the basis of blind faith and objective proof. TTFN, CTC

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