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To: Arthur Tang who wrote (1164)9/22/2000 1:44:39 PM
From: Arthur Tang  Read Replies (1) | Respond to of 1471
 
To tell you the truth; I will sleep better, if I ever found out that the company I invested is handled by market makers who own some inventory(from moving sizes of bid and ask offers). Then they will be like me looking for some reason to have a nice move.

Some stocks that I have analyzed, the market makers fought each other and have excessive shorts due to lack of control. Large brokerages let their customer overbought then couldn't put the fear in the customer to buy back the same stock. So, those stocks sunk.

Then there were market makers who don't believe the company or their management. They only own shorts. They are forever, waiting for the company to make a mistake so the stock will tank, and they can buy back with bigger and bigger profits.

So, there is this third factor beyond fundamentals and technicals; which we have to learn and keep in mind.