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

To: Tai Jin who wrote (4642)	10/4/1999 4:28:00 PM
From: E. Davies	Respond to of 18137

a lone MM sitting at the bid or ask is slowly filling orders (maybe one every 15 seconds or so) while there is a huge pile up of orders. What do you think they're doing? He may as you say be trying to slow the market. That is sometimes not necessarily a bad thing in my opinion because he is serving his purpose of "providing an orderly market". Just as likely what is going on is that the MM is asleep at the wheel and has not yet grasped how out of sync with the true market he is. This is the true problem. I've seen many times when the MM will stick a bid at say 39 5/8 while a huge pileup of sells accumulate at 39 11/16 and the rest of the buyers are down at 38 7/8. The reason I think this is more MM lack of attention than anything is that it is in reality a stupid way to behave- buying at 39 5/8 when everyone else is buying at 38 7/8. Eric