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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: John Curtis who wrote (18557)	3/4/2000 8:21:00 PM
From: Pallisard	Read Replies (2) \| Respond to of 27311

Quite an inside perspective on the MM system. I partiularly like this: "Mr. Pasternak concurs. Computers automatically fill the vast majority of orders Knight is charged with executing, leaving most of its 393 traders free to try to take advantage of the information these orders reveal about the market." I think we're fast approaching the day when nearly all securites trading can be handled by no-conflict-of-interest computers. Today's MM system is rife with corruption with the accompanying concentration of wealth into fewer and fewer hands by the erosion of small investor profits.

To: John Curtis who wrote (18557)	3/5/2000 2:51:00 PM
From: eli74	Read Replies (1) \| Respond to of 27311

To paraphrase Claude Rains (sp?) in "Casablanca", "Rick, I'm shocked, simply shocked that there's gambling going on here." Market makers wouldn't be in the business if they couldn't make a buck. And it shouldn't surprise anyone at all that they're front-running customer orders. These guys are after all in it to make a buck. From my perspective, there are two main things to take away from the article. First, never trade on the open, because that's the only time the brokers have that big of an informational advantage. Second, don't get involved in stocks where small price movements can make a difference. Stick with stocks that have expectations of big movements (such as VLNC), as opposed to small, very short term trading strategies. That's a sucker's game, in my book if for no other reason than short term trading is where the market makers have the biggest advantage. Whew! Now I can get off my soapbox. Eli74