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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (278)	7/30/2000 6:25:14 PM
From: SteveDavis	Respond to of 1426

Jorj. You are absolutely correct. My mistake. The WSJ article stated they sold the stock short and it never came back down. The foul up seems to be that no one at the firm was keeping track of how much their exposure was till they were under water. I think they were bought by LaBranch. My take has been that when the fast moving really start to "scream" up/down the MM just step back and let the ECN have at it. How can an MM really take any kind of position when the stock is trading so fast I can not distinguish prices on my level II screen? I have always assumed that the MM at MLCO was really competing with the MM at the other large wire houses and really saw the daytraders as noise. I would also assume that with CNBC and other news sources so readily available to the public that if a MM went to the bathroom and got caught with bad news in a small stock it could drop on him 5 points or more before he returned. How many time have we seen some "dot com" run up huge amounts on some good news affiliation with Yahoo,AOL etc? I would like to have Gene's input here also as I may be way off base but if you watch the very different opinions that the analyst have on a stock why would the traders be any different. They are humans and do make judgements on what they think they see happening? Boy, this is a fantastic business. Brings all of the human emotions into play, with the speed of light!!! Steve Davis