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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: HeatherN who wrote (4113)	9/17/1999 8:22:00 PM
From: gbh	Read Replies (2) \| Respond to of 10027

It has seemed a bit strange to me that MLCO has been relentless in their selling given the association of Merrill and NITE. Hi Heather, the fact that MLCO is selling shouldn't be surprising. It could just as easily be Goldman or any other big institutional broker. I truly doubt that MLCO is selling for their own account. More likely they are just brokering a sale for a large fund which is liquidating a BIG position. Also, I wouldn't put too much weight into the MER/NITE association. This is a great deal for NITE primarily because it substantially lowers their clearing costs, which should flow right to the bottom line. Other than this, nothing else is a certainty, although much has been speculated about some amount of order flow that MLCO might someday steer to NITE. Although there is still no catalyst for a trend reversal, this sort of capitulation selling is sometimes a harbinger of near term price appreciation. Good observation. I watched this stock just about all day on L2, and it certainly looked like capitulation. The problem is, it looked like this about 3 times. :) On a positive note, the stock actually closed strongly, and traded steady to higher in the after market, unlike the previous two days. Perhaps this was the "puke it up" bottom today, but I'm not sure. Its likely that the strong close today was and equal amount of "bottom speculation" and short covering. No doubt, short sellers were all over this stock the last few days. Technically, shorts like to pounce when support level are broken, and 30 and 28 were solid support levels. The good thing about a heavily shorted stock is that eventually they must cover. Gary