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Technology Stocks : Echelon Corporation (ELON) -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (2334)	6/15/2000 2:46:00 PM
From: Agenda	Respond to of 3076

"Fluctuations in price are randomly distributed and asymptotically approach the expectations for future earnings. Only." Your textbook nonsense is just that. Perhaps you would do better to read the headlines about mob influenced stock price movements. The complement to that is the stock price influence of "legitimate" players. It's all a game, you know. Stop spinning your yarns.

To: ahhaha who wrote (2334)	6/15/2000 3:06:00 PM
From: tuck	Read Replies (1) \| Respond to of 3076

ahhaha, Intermediate to long term, I would agree with you. But we're talking a few days here. An if the forces you talk of contribute net zero, that magnifies the influence of the market makers even more. Anyhow, the market makers have a good understanding of them since they are in on many of the trades. Market makers are generally net sellers of options. So short term they definitely have incentive,and their various tricks have been documented both in academic and in business press. So they have more potential influence than you are giving them credit for, if they choose to use it. So >Fluctuations in price are randomly distributed and asymptotically approach the expectations for future earnings. Only.< is meaningless in this time frame. Whether or not market makers use this kind of short-term influence is a subject of some controversy, in part because only certain market makers do this. And in part because there are indeed times when the market makers are overwhelmed by other influences. So in studies of baskets of stocks, you're right, there's not much correlation. But in individual stocks, it can be a very different matter. Some folks here think ELON might be this kind of stock and are watching it with the idea of trying to detect any such correlation, is all. Cheers, Tuck