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

To: Dominick who wrote (577)	8/16/2000 9:34:12 PM
From: gene_the_mm	Read Replies (1) \| Respond to of 1426

DOMINICK... Inventory depends on which MM it is and what they are doing in the stock (do they have an institutional customer buying and they need to have inventory to anticipate large orders, do they have a tremendous retail interest starting to unload their stock, etc..). For the most part, MM's try to be flat in stocks that they can be flat in. If they have some type of situation as mentioned above then they will take a position based on what they anticipate. I would find it hard to believe an MM out there would have an inventory larger than 50,000 or 100,000 shares unless there is some STRONG reasons for positioning something larger. Keep in mind with large inventory positions comes large risk. Most MM firms do not like taking overnight risk, especially in choppy markets like we have been in during the past two months. Indicators that I personally like to use are: TICK---# of NYSE stocks trading on an uptick vs. a downtick TRIN---(or ARMS index)A market indicator used in technical analysis, calculated as follows: Arms Index = ((# of advancing issues / # of declining issues) / (Total up volume / Total down volume)). A value of less than 1 is considered bullish, greater than 1 bearish. also called Trading Index or TRIN. see also index. S&P FUTURES NAZ 100 FUTURES & CHARTED REAL-TIME COMPOSITE (what the NAZ composite looks like vs. charted real-time futures) ***** REAL-TIME TICKER ***** Having a real-time tape of every print in a stock you are watching is more valuable than any other tool you can watch. The price action tells the real story while the LEVEL II only shows MM/ECN movement, not real price action. Learn to read the tape properly and you will be able to trade on ANY exchange, system or environment -- IMHO -- and this is what Jesse Livermore tells us in Reminiscences of a Stock Operator. Hope that helps... All the best, -- Gene