Market Makers - What They Do and How They Do It Message Board

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Non-Tech : Market Makers - What They Do and How They Do It

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To: compradun who wrote (107)	1/27/1999 6:32:00 PM
From: Rick Faurot	Read Replies (1) of 429

ECNs that are showing working orders usual change size fairly often. That's one tipoff that it's a real order. I think MMs do use ECNs to back them on the same side of a trade. If the MM wants to avoid being SOESed, he may only show 100 shares. This makes a SOES order useless for most traders. What is more common than use of ECNs on the same side in a trade is the MMs getting their buddies to jump in with them. If GSCO is making a move, it is common to see MSCO, MONT and other biggies jump in to back him up. You have really got to pay attention to this because if these guys are all on the bid together, it may look like the stock is well supported and ready to head up. But these guys can quit the bid all at the same time--sort of a gang head fake--and drop the price real fast. I have not seen BTRD in a head fake move yet. I did see a 10k ISLD headfake today that surprised the heck out of me. ISLD is easy to hit so it is not the best vehicle for fakes. In this case the 10k flashed in and then flashed right back off again. Serious BS!!

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