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To: Digger Sacket who wrote (91)	10/1/2000 4:58:15 PM
From: Patrick Slevin	Respond to of 8925

Running stops is generally a local's game. I'm sure ISpec would have better feedback on this but the long and the short of it is that the locals know that if they move it in one direction or another the stops will kick in and the market will by inertia continue along that line. It's easier electronically, actually, than it is in the pit. At least in the pit people know when it has progressed too far and step in with physical orders. If you look at any time when the market swings are extreme you will see that the E-Mini gets much more elastic than the pit-traded spoo. This is a failing of the Computer-driven method over the pit. A computer only continues to hit stops and swings further than the traders in the pit would allow the market to. EDIT <They say that there is no "market manipulation."> I would not call it manipulation either, to be honest. It's just traders testing the envelope. Whichever way breaks is the path of least resistance.

To: Digger Sacket who wrote (91)	10/1/2000 9:05:12 PM
From: Teresa Lo	Read Replies (1) \| Respond to of 8925

"Do you know if it is possible to manipulate the market by running the stops? Does this apply to only the open outcry system, or the electronic Globex as well? Anyone know?" All I know is that the spikes are indeed created by the execution of stop orders. These tend to be clustered around yesterday's high and low, the first hour's high and low and other important swing high and low "pivot points". I think the locals on the floor can easily see where they are, and when the market gets close to it, there is a tendency for price to gravitate towards it and "run them". It's very simple to figure out where they all are, since most traders love to buy breakouts and sell new lows. It happens in futures trading with both open outcry and Globex, and certainly in stocks. This is why we never enter stops at these points - ever. Teresa