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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Paul A who wrote (93117)	4/5/2000 9:27:00 AM
From: DebtBomb	Read Replies (2) \| Respond to of 108040

In my opinion, there is nothing unusual about a Nasdaq 500 point drop. Market makers make the market. And that is their job. If there are no buyers, they will try to make buyers. They will drop the stock price to induce buyers. It's their job. Conversely, if they need shares to sell and there's buying pressure, they will up the stock price to induce sellers. It's their job. The market makers don't set prices buy an exact buy/sell ratio, it's not a science, it's guess work by them. So, in a crash type situation like yesterday, with no buying support, the MM's will just keep dropping the price until they find buyers. And, this why the market is so dangerous for longs in a crash. If the market makers had to yesterday to induce buyers, they would have just kept dropping the prices to ..... This is also why it's a good reason not to fight the tape on stocks, or the MM's may take you to the cleaners. All in my opinion.