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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (9912)	11/18/1997 12:05:00 AM
From: Orhan Birol	Read Replies (2) \| Respond to of 94695

Tommaso, I think the odd lot buy/sell and short sell theory has changed a lot since the advent of option trading and program trading. You are right that the odd lot short seller today is a very sophisticated trader while in the old days he was the dumbest. I think most of the short trading in odd-lots is done by program traders to day, to get executed on the first uptick. If you want to short a round lot of stock on the NYSE, a long sale is always ahead of you and there may be other shorts ahead. But if you enter a market order to sell 99 shares you will be executed on the first uptick regardless. As to the old theory of odd lot buys and short sellers; the theory stated that there were the very frugal small investor who always managed to buy at the bottom versus the little guy who traded his account constantly a managed to be wrong all the time. Now we have the put buyers represanting the short at the bottom types, not quite the same scope of the ultimate wrong bet, but still! And the mutual fund buyers and round lot buyers, as the frugal investor is so much wealthier now. As to what will happen now. Don't have a clue! You are better of asking someone who casually watches the market and has all his money tied up there. I did think that there was a good probability that we would not go below the lows established on the billion volume day soon, but back to the races this quick? Don't understand at all! Good luck, Orhan