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To: Arthur Tang who wrote (1137)	3/27/2000 10:45:00 AM
From: Arthur Tang	Respond to of 1471

Simple lesson on market making by market makers? daytrades.com Free streaming charts from the above website will help you understand the trades by Nasdaq market makers and brokerages. You see the intraday chart, accompanied by individual trades. The trades are high lighted by colors to tell you what kind of trade. Bid and ask of market makers are also shown. Then you can also observe Island (Datek) limit orders on any stock. tradescape.com will give you a demo free, of level2 market maker offers. It will give you an idea that the registered market makers offer different prices on the stock, where as the brokerage will give you real time quotes which are not at all related to the market makers offers. The reason is that Nasdaq realtime quotes are only reports of the last trade of both ask or bid. The strangest thing would be the last bid recorded is higher than the last ask trade. It makes you think that brokerage will lose money each time they buy from you, then sell it to you cheaper. In reality, a daytrader may have traded limit orders, by buying at bid price and selling at ask price. Some day, this practice will be stopped by middleware in the computer system. Alas, the computer system at Nasdaq or brokerages are not perfected yet. Observe, most online brokerages lost money churning accounts for commissions. Schwab is the one who has middleware and is making money.

To: Arthur Tang who wrote (1137)	3/28/2000 10:15:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

Simple lesson on technical analysis if influenced by change of leading market makers? Using AMES as an example. The charting of AMES has to have notations of the leading market maker on the time scale. Each market maker has their own customers. The size and number of their customers effect the volume. How that market maker offer the bid and ask, balances the supply and demand of the available stock. Therefore each market maker has their own signature, if you will, on the trending of the technical analysis. Enough said, lets look at the AMES chart and superimpose the change of the leadership of market makers on the time scale plus the short interest monthly curve. Commentary in the following post may be of interest. Message 13294729 Expectance of retrace of last year's curve may be purely speculations at this time.