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To: Ga Bard who wrote (1742)	11/6/1997 11:47:00 PM
From: Mark Rutheiser	Read Replies (2) \| Respond to of 8835

You have some interesting points. And I have never thought about it that way. However, for the last few days I had orders to buy CSCA at one and two ticks below the ask. Nothing has been filled. With your theory, they should have been picking up my orders and dropping the bid/ask.

To: Ga Bard who wrote (1742)	11/7/1997 12:39:00 PM
From: Brad	Read Replies (1) \| Respond to of 8835

GaBard, I agree with your analysis of the new way MMs are dealing with buys/sells and short covering. I have seen this happen on several other stocks. Overall, when investors learn to buy at the Ask, it could generate some exciting upward movement because other investors would probably be more attracted with steady buying at the Ask. The shorts would probably be compelled to cover quicker and the price could move UP more briskly. Thanks for drawing attention to these new developments. Best wishes, Brad

To: Ga Bard who wrote (1742)	11/8/1997 3:19:00 PM
From: Esteban	Read Replies (2) \| Respond to of 8835

GaBard, I don't know if I agree with you re: "Basically the MMs are sending out a message either buy at the offered ask or pay the piper. I can roduce numerous stocks that when solid buying came in the price fell and not one sell. But because of the midpoint this stock price fell an actually the price plummeted on very few sells. Since most investors do not watch trading logs they really have no idea what they are doing to their investment buying at the midpoint. The MMs are treating midpoint buying as a sell even if it is a buy." If orders are flowing between the spread on the buy side, this intrinsically indicates a slight weakness in the stock price even though the orders are to buy. Buyers believing they can negotiate a better price indicates they are willing to sacrifice a sure execution. The reverse is true for selling between the spread, sellers are willing to sacrifice time for price. Knowing that midpoint trading is inbalanced one way or the other affords an astute trader the opportunity to profit from the MM practice of initiating small moves in price. In the case you described a prudent course of action would be to wait until there are orders flowing at the ask, then jump on at the ask or at that time try for price improvement. Eventually, the demand for the stock will dictate the price. Discovering these MM games and spreading the word about them will eventually stop these practices as we traders adjust. Thanks for your insight into this practice. I think we little guys should continue to both buy and sell between the spread whenever it is more than the established minimum and we are not in a panic to initiate or liquidate a position. The competition generated this way will force the MMs to keep the spreads low, or be left out of the game. How do you know whether a trade at the midpoint is a buy or sell order? My time and sales from PC Quote doesn't reveal this information.