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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: da_cheif™ who wrote (22456)	3/1/2006 9:27:48 PM
From: Mongo2116	Read Replies (1) \| Respond to of 207287

ok, what happens if it goes electronic and those crooks are gone, would not demand (buying) determine whether it goes up or not? Thank you for your patience

To: da_cheif™ who wrote (22456)	3/2/2006 2:05:32 PM
From: ahhaha	Read Replies (1) \| Respond to of 207287

Because of his book, the specialist sees shifts in trends long before anyone else. This gives him a great advantage. If that were the case, then why are the exchanges making the book publicly available through Super Montage and Open Book? They could have done that 40 years ago, but they believed then that knowledge of the booked orders could have some consequence to price. I tried to explain way back then time and again, that that wasn't the case. There's no information in and no arbitrary access to the booked orders. No specialist wanted to believe me and neither did Ney nor any of the floor traders who I asked. The trace will tell you what the state is before the specialist knows it because the ECNs probe the best B/A before the specialist can update. Indeed, the specialist off lays orders to the instantaneously superior B/A on the ECNs. This means the situation on the floor has been rendered irrelevant. 40 years ago when Ney was trying to manipulate the specialists, institutions dominated the DOW, not the specialist. Since then the public small fry trader contingent has become so large that the specialist simply doesn't have the resources to try to control anything. The specialist must merely make the market just as was the case during Ney's day when the institutions provided what has become an en mass small fry role. Trying to do anything else leads to an inferior return. To this day there's a lot of specialists who still don't think they should merely get on the other side of the public action when the public fails to provide it. They think they know where stock prices are going over the short run. Accordingly, they realize an inferior return. It doesn't matter to them since they're independent and don't have to seek a superior return, much like the under performing institutions which dominate the biz.