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

To: bobkansas who wrote (18773)	1/16/2000 1:38:00 PM
From: Rande Is	Read Replies (3) \| Respond to of 57584

. . . . . . On Cramer and His Market Maker Sympathies. . . . . Right off the bat I have a problem with Cramer's recent posts. He claims that the dot coms have "infected" the other parts of the market. This is absurd. The article was nothing but whining from beginning to end. And I have no sympathy for those not making money in this market. . .either lower your expectations and continue doing what you are doing, or change with the times. But don't whine about the good 'ol days. Then his Market Maker source makes matters worse by insulting our intelligence. . .saying that WE are the cause of the recent volatility. One thing that everyone must realize is that Cramer is one of the Wall Street Fat Cats, too. . . . he runs a very large hedge fund, where he trades many millions of dollars each day. So he relates to the woes of the brokerages, the market makers and the fund managers FAR more than he relates to the small individual investor. This is a quote from Cramer's recent post. . . It gets worse, the market maker went on to say: "Factor in the daytraders who see the stock in motion and jump in for the ride pushing the stock further." That's how you get those crazy jumps that we never used to see. Everybody is just feasting on everybody else's order. We have total equality, which means that the little guy gets the same execution as the big guy. But it also means that the big guy can't really do anything because the little guy can break it up. It has, in a sense, turned us all into little traders. I for one, LIKE that we are getting the same execution as the big guys!!! That is one more step toward leveling the playing field. Yes, there has been wild volatility. . . and yes, the markets are in an upheaval. But it is serving to level the playing fields. . . just as the recent SEC rulings intended. . . and to me, THAT is the important thing. I look forward to further SEC rulings and to ECNs taking over the bulk of the trading. Market Makers, Anal-ysts and Cramer are BLAME SHIFTING. They claim that because we individual investors keep bidding up our favorites each time we see them at bargain prices. . .we are the CAUSE of the market volatility. If you keep trying to short CMGI, JDSU, CMRC, ICGE, DCLK and YHOO and they suddenly run north before you get a chance to cover, welcome to year 2000. If anything, WE are the ones out there contributing to the liquidity in the markets!!! Market Makers are admitting that they are refusing to make market. But as our daytraders bid stocks up, then short them back down they bring on liquidity. . . . .and get this. . . . if that is the case, then we no longer NEED the market makers. If the markets are currently running with a minimum of market maker manipulation, as Cramers post suggests. . .and the markets are only slightly more volatile than we are accustomed. . . then I could CERTAINLY learn to live with that. . . .just send them home and let them play the same way as we do. . . This whole thing about individual investors, traders and daytraders RUINING the markets and the Fat Cats, market makers and fund managers wishing for the liquidity of the good ol' days when you could get a better execution when you were buying large, due to Market Maker manipulation that you could count on. . . is ridiculous. It is like the mafia sitting around saying, "remember the good ol' days when the law just allowed us to run drugs, prostitution racketeering and theft rings and just turned a blind eye? That new RICO law ruined our good times. It should be repealed." So if you want my opinion on recent SEC rules that have been applied to the Nasdaq Market Makers, I will give it. I LIKE THEM. And I hope that they continue to change the rules in favor of the individual investor/traders. Its about time. And if Market Makers don't like it. . . tough. There are plenty of ways to make an honest living in the markets. They are welcome to try their hand. As for Cramer, I would suggest he re-focus his posts and articles, etc. away from the Individual Investor/Traders. . .and toward his OWN kind. . . the larger, institutional investors. . . . and I further suggest he change the name of his company to simply "The Street". Especially if he truly believes that the "dot com" is the cause of his troubles. I think the real cause of his troubles is his difficulty in reading the markets. . . evidenced by his performance records and his implying that Individual Investors have caused recent volatility. As I said a week or so ago. . . look at the intraday 1 minute charts on the Dow Jones Industrials. Compare them to 1 month ago when the Dow moved in small increments and was fairly difficult to move. Now, look at the swings in the Dow over the past few weeks. . . .where it can move 50 points up or down in a matter of minutes. Then watch how the Nasdaq tends to have a delayed reaction to the swings of the Dow. . . . eventually catching the sync. . .and tracking it. Now am I to believe that Individual Investors are the cause for such volatile swings in the Dow Industrials? That is ridiculous. We don't even trade those stocks. . . .remember, we are the ones trading the 4-letter issues. And tell me that LU and AOL were not manipulated lower this week. As I have been pointing out over the past week, the very best high tech companies. . . the ones that EVERYONE wants are at bargain prices, due to this manipulation lower. . . [Look at the names on those Point Losers and Percentage Losers list once more. . . they are the Best-of-the-Best.] And each time our favorite tech stocks reach a level where Individual Investors can no longer stand on the sidelines and watch. . . .we contribute to the liquidity by playing against the sell-off, thus, we become the market makers. If the recent market upheaval caused by the information, technology and communication revolution, [as we try to calculate what many of these companies will be worth in the next 3 to 5 years], makes investing and trading stocks more difficult. . . . then it is more difficult. Make the adjustments and move on. This bull market is NOT going to be squashed. Not by Market Makers, not by the SEC, not by the Wall Street Fat Cats, not by the large Brokerage Houses and not by Cramer. Rande Is