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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (24670)	1/22/2004 1:35:59 PM
From: GraceZ	Read Replies (1) \| Respond to of 60323

Actually numerous small orders have more effect in moving price than large blocks. A large block sell goes through at the price that the MM needs to cover their risk and then the B/A frequently returns to where it was before the block was executed. Meanwhile a small order off balance allows for more price movement. This is why you get so many gap ups and gap downs when the public gets involved. They swamp one side of the trade and each order gives the MM an opportunity to change the B/A. Money flow follows the blocks but price tends to follow the small orders. This is why I can speculate that the run up to 80 was most probably a distribution from institutional owner to the public. I don't know this for sure because I haven't been tracking this particular issue, but that is something I've seen over and over again with various other high flyers. The one caveat to this scenario is that there are times when institutions dump wholesale and in that case they will take it down hard.