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Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling -- Ignore unavailable to you. Want to Upgrade?

To: Bocor who wrote (441)	5/10/2001 2:31:59 PM
From: GraceZ	Read Replies (1) \| Respond to of 6873

AFAIK the MMs are the only ones that go naked short. They do this to provide a continuous market in a stock where buying demand completely outstrips supply. You can see what happens in a stock that has MMs going naked, it ticks up relentlessly and you get a parabolic rise. Then when the demand slacks off or sellers come in, you get a really nice and fast decline. As the public short sellers start to cover from the decline, you then get a sort of hidden demand from the market makers covering their previous shorting to the public action. Even while the selling is over-whelming you can see that the tick rises every time buyers come in.