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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Shea who wrote (8677)	6/25/1999 12:35:00 PM
From: Rande Is	Read Replies (2) \| Respond to of 57584

BDE 11:20 Last: 6 3/8 -1/8 (1.92) Bid 6 5/16 (5) . . . . .Ask 6 1/2 (50) That is a lousy 5000 shares sitting on the ask again getting it to downtick a sixteenth at a time. . . due to imbalance [10X the bid size]. Nobody here is stupid enough to place a "sell" in a 5k size. . .too big. . .it will certainly help tank the stock. . . so that 5k is an offer meant simply to put PRESSURE on the price. It is no doubt a short-sell order for all or none. . .then as folks sell a hundred or two hundred shares at a time and the price downticks, that offer is simply lowered accordingly. This is the way the short-sellers can drive down the price without spending a nickle. . . it is nothing more than MANIPULATION of the price. . .that is why we like to blow them out of the water when they show up. Keeping some money on the side for "trading" our SAMS is helpful to add liquidity. When the volume dries up with liquidity . . .then shorts move in and are able to steer the stock right down where they want it. . . unless we MATCH their offers with bids. To do so. . .we place buy orders on the bid that "outweigh" their offers on the ask. . . thus neutralizing the momentum. 9 times out of ten. . by doing so, the shorts get scared away. . .and often cover and leave. . . and that is what turns that momentum around. With BDE, we have succeeded in doing this about the last 4 or 5 times when shorts have placed 2500 or 5k at the ask . . up for sale. . or short-sale. What is nice is that when we eat thru the ask and then some. . . they go short at that price. . . while the stock upticks. . . forcing them to cover higher than they entered. . .costing them money. If we continue to do such a thing. . . not in a concerted effort, but individually. . .we blow their plan to tank the stock. Eventually, they will lose so much that they will walk. Remember this. . . .percentages are greater moving up than down. For instance. . .a short at 10 with a cover at 5 yields a gain of 50 percent. Whereas a buy at 5 need only rise to 7.50 to yield 50 percent. But a short-sell at 5 that must be covered at 10 is a loss of 100 percent. And that is just another reason why those swing-trading longs successfully will ALWAYS make far more dough than those short-selling. . .when making an equal number of trades. . . it is just simple mathematics. So. . . it is very easy to take the wind from the sails of short-sellers. Rande Is

To: Kevin Shea who wrote (8677)	6/25/1999 3:06:00 PM
From: Bucky Katt	Read Replies (2) \| Respond to of 57584

Kevin, it is a better than 50/50 chance metals will rally by August. There is not much in the futures to show this, they only respond to big news, like the mini copper spike today. Most metal stocks had a little spurt today, but to me not worth chasing. Buy when they dump out again, or short them for a quick couple of bucks. The key to copper is of course Asia, so who really knows, because When China devalues, it may get real nasty for awhile. The only thing I found interesting the last couple of days was JWEB. Still think FLAS is one to watch.