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Strategies & Market Trends : STOCKS WITH ATTITUDE TEAM - FA/TA AND EVERYTHING ELSE -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (64)	12/14/1997 2:58:00 AM
From: David Smith	Read Replies (2) \| Respond to of 2377

Ken, I am not sure what your message was in reference to, but I noticed the following post you made recently on the CAFE thread: "A MM is a Market Maker. A Market Maker is the company that is in charge of maintaining an orderly supply and demand market in a stock. MM's have a seat on the floor of the NYSE and NASD." Ken, a few important points. First, a market maker is most definitely NOT responsible for maintaining an orderly market by matching supply and demand. That is the role of a SPECIALIST, who sets prices for listed stocks on the NYSE...the NYSE is an auction market, while the Nasdaq is a dealer market. Second, there is no such thing as a "seat on the floor of the NASD"...indeed, there is no centralized floor. The Nasdaq market is composed of thousands of dealers in every state in the country. A market maker can be your corner brokerage in small-town Iowa, or a global financial powerhouse like my employer. It is an electronic marketplace linked by selectnet, soes, various ECN's, and occasionally the telephone. If you are going to be in charge of evaluating market maker activity on this thread, you should be sure you understand these concepts first as they are important.

To: Ken W who wrote (64)	12/14/1997 9:02:00 AM
From: Trader X	Read Replies (3) \| Respond to of 2377

Whether M. Smith is a real MM or not is immaterial. The points he raises are legit and poignant. Laughing them off as you do only begs the question further. Honestly, I don't care if he IS a MM or not, I had the very same nagging questions running through my mind BEFORE his post. As a Technical analyst myself, I agree with Mr. Smith that stocks under $5 are not good candiates for T/A study. I believe the following is a valid criticism that needs to be addressed by this group, if you are to have any real integrity-- <<There is one member of your sponsoring team who admits to being a short term trader....short term meaning hours, not days. Have any of you ever realized the absurdity and intellectual dishonesty of picking a stock based on TA and FA, calling it a "great pick for long-term investors", then buying and selling it in a matter of hours after the short term POW buying effect has worn off?>> That question also came to me before reading it by Mr. Smith. A diverse group with a large following can buy into a penny stock with a small float and get out quickly after "touting" it. I'm not accusing you of that practice, but I cannot be the only reader who's considered this possibility. -Kevin