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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (121648)	8/3/2000 10:17:38 AM
From: Rob S.	Respond to of 1576178

Something to understand about the mechanics of NYSE traded stocks is that there is a specialist who is the "buyer of last resort". AMD was delayed for trading which means that there was probably an order imbalance with more sell orders than buy orders before the open. The specialist must buy the imbalance so he will set the price at an opening level where he is likely to be able to sell latter at a profit. The specialist isn't looking for a large percentage gain - maybe 2-4 points. The specialist has access to level III data which includes order origination data that the rest of us don't have access to. In rough times like this, they are likely to poll some of the larger institutional buyers to find out where they would buy and if they will help buy at the open to absorb some of the imbalance. If there is something structurally wrong about the company, such as they were cooking the books or lost a major portion of their business, then the stock trend may remain down following the gap open. However, even then the stock is likely to trade higher after the open at least momentarily. Some traders make a living primarily trading this predictable pattern. Enough for now - this is prime trading time and AMD is rebounding, as it should. I've noticed much more large block trading on the buy side - 50k, 35k, 25k with few large blocks on the sell side. I think this is it for at least a while an probably it for at least a few weeks - bottom reached this morning imo.