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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Cary C who wrote (4425)	1/27/2004 2:21:34 PM
From: Ken W	Read Replies (3) \| Respond to of 23958

Cary If ever there is a lesson to be learned regarding the stock market is that there are NO rules! Just when you think that you've got the damn thing figured out "they" change the way of doing things. Joe's recent post on the new short selling rule is a perfect example. Canada is at fault for shorting stocks under 5.00...that's pure BS. The market maker firms are allowed to short at will, without uptick. Ever wonder how a stock can move several % in one day with large volume only to sell down the next day on very little volume? IMO here is what happens. Very few market makers acutaly carry inventory of any stock. If there is sudden demand for the stock they simply "short" the stock to the retail customer until some profit taking begins to come in. They then short small lots of 100 to 500 shares at a time until they can "cover" the orginal position on their book at a lower price. Since this is all a paper game, they never have to physically deliver the stock to anyone. Their book is clean and anyone that was fast enough to have bought before the demand made a profit. Those that shorted at the top of a run make money too. It's all a big chess game and not for the weak of heart. LOL Ken