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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Robert Cohen who wrote (1423)	6/30/1999 1:51:00 PM
From: compradun	Read Replies (1) \| Respond to of 18137

REDI is widely used by hedge funds. It seems you have a fund building a good sized short position.

To: Robert Cohen who wrote (1423)	6/30/1999 5:03:00 PM
From: Bilow	Respond to of 18137

Hi Robert D. Cohen, M.D.; Regarding a MM staying at the ask, preventing an uptick... Since he is staying there for weeks, it is clear that a lot of stock is available to sell. Sometimes a MM gets a limit order from a customer to sell at a particular price. The MM is then required to show the order to the market, unless it is a block order (i.e. 10,000 shares or more.) So is the stock in question a very thinly traded stock? Or it could be a series of limit orders from the same customer. Sometimes there are MMs that just trade badly. A recent example in MSFT (from a few weeks ago,) was a MM who kept showing a block of 50,000 shares. This would get eaten down by the market, and then replaced with another big block. Eventually, every time the guy showed up at the ask, everybody dived for the bid. Since he was showing his real size, it was like walking around with a neon sign saying "front run me!" As a trader, my response to a MM holding the ask on a stock for any long length of time is to get out of the stock until the MM goes away... -- Carl