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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: surelock who wrote (2866)	8/5/1999 10:21:00 PM
From: DanZ	Respond to of 10293

Surelock, Volume in GUMM has picked up towards the end of the day lately but I wouldn't say it has high closed. The stock dropped 1/8 to 1/4 right before the close on Tuesday and Wednesday and today was the first time this week that it closed strong. The two market makers that have been doing most of the buying, HRZG and SLKC, have been trying to buy stock lower all day. When they don't get any stock at the lower price, they aggressively raise their bid, take out the offers up to about 12, and then pull back. I have seen people place large orders to buy (sell) when their real intention is to sell (buy). This is a game that people play, but the danger is that they might get filled on their bluff. For the most part, I've seen people use ECNs such as INCA or ISLD for this game. New rules that require market makers to show their true size are being put into effect by the NASD that might curtail these games to an extent. beta.siliconinvestor.com I haven't seen this game played in GUMM the past few days. HRZG and SLKC have actually been buying stock as opposed to using limit orders as a bluff. For example, HRZG took out the offers at 11 1/2 today and was left with a 7300 share bid at 11 1/2. He sat there and got filled as sellers hit his bid little by little. If he was bluffing to try to get people to buy at the offer, he probably would have pulled his bid when he started getting hit. Also, these types of games aren't normally played through market makers such as HRZG or SLKC. They normally use an ECN for the bluff. If you have Level II, have you noticed who put up the large bid size in Sabratek? Also, who was on the offer at the time? You mentioned earnings. GumTech's second quarter earnings should be released August 12 or 13. Best of luck, Dan