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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Scrumpy who wrote (81886)	2/7/2000 6:07:00 AM
From: lee kramer	Read Replies (4) \| Respond to of 120523

Scrumpy: The NYSE specialist is charged, among other things, with making and maintaining an "orderly" market in the stocks they handle. In the case of LU, (and others) you can't really expect a specialist to take all the stock offered when there's an avalanche of sell orders. They've got to find a price where the buying will balance the selling before re-opening the stock. These guys are in business to make a profit...they can't do it by sticking their necks out to maintain an orderly market at their expense. This is simply a fact of life. (The same is true when they get swamped with buy orders...they don't want to short the stock to keep prices "stable"...would you? I've always wondered about the specialists and their actions. Years ago they could, with their own capital, maintain orderly markets. But with the size of trading the past decade I'm not so sure if they still are viable. I suspect the NASDAQ market-makers are forced at times to let the "market" dictate prices, while they must step aside until the dust settles. But I agree; these folks don't have the small investor/trader's interests uppermost. Just how it is. (Lee)