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Strategies & Market Trends : The Good-The Bad and The Ugly -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (3033)	10/14/2000 3:01:35 PM
From: James F. Hopkins	Respond to of 8686

Goldman ; Like most other Broker/Dealers likely has a "war room" even if they don't call it that. They have the inside scoop of where their bigger clients are willing to buy or sell stocks. For the most part broker/dealers always run the "war room" holding a short position that goes up and down. They seldom ever buy stocks..just debt. But they do short and cover like crazy and in front of the market. They also sell a lot of puts but if you do put stock to them it's always at a lower price than they shorted it. The sliding short position they hold effectivly changes the float of a stock. ( effective float is float+shorts) they know when they are going to increase & reduce their shorts, hence change the effective float and move the stock. Chances are they had big buy orders on the books for several weeks IF the market got low enough. They sell puts, short sell puts short and take the market down so they can fill the buy orders. If they have sell orders they will move the market UP to get to them. Watch thomsoninvest.net for several days, use some popular stocks. Notice that if big buy orders are below the market most of the time it will move down to them, if sell orders are above the market it will move up to them. They want volume and all their bets are hedged. Jim