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To: OpenSea who wrote (3226)	2/14/1998 1:39:00 AM
From: JOEY	Respond to of 27968

I found this on another thread. It shows how MM work. This might help the new investors. Not hypeing the stock mentioned. Notice the spread before the 3 trades was .19 x .22, then it went to .19 x .20, then shortly after the sales back to .19 x .22. Most likely some MM dropped down to .020 in the hopes of selling a few shares, didn't have any takers and dropped off the ask to try again some other time. The MM's move around all the time. Some like ALEX and ISLD are famous for popping on and off in between the spread. Kind of like what happened here. Pop down to .02 on the ask for a second and then leave, either raising their ask way way up or not posting a quote altogether. The near term movement of the MM's doesn't necessarily, (very often doesn't) reflect what is coming accross the tape. And their are a million potential reasons, 99% not devious IMO. Often you'll see level II look something like this: .02 .021 .02 .025 .02 .025 .019 .026 The ask maker at .021 may drop off the ask, either becuase he sold his allotment at .021, or he is deciding to sit the trading out for a couple hours or something. People who don't see level II will say, "geez, the MM's just jerked the ask up to .025", when in fact it's just the next incremental increase after the inside ask maker drops. I seriously doubt, IMO, the MM's are "materially" short ARET or most other stocks. MM's legally short all the time to produce liquidity, but usually cover same day or soon thereafter. Most MM's are not stupid enough to take on a large short position in a volatile penny stock. Not worth the risk. I really doubt there is much in the way of games going on with ARET. On a high volume 1mm share day, that's only a total value of $100,000 worth of stock. There profit is a small fraction of that. I don't see it worth their time and trouble to micromanage every fraction of a penny tick to make $10 or $20. 169600? Seems like I've seen that before too? Or maybe I've just been staring at it in your post for awhile? Sometimes traders buy and sell odd numbers so they can see their trades go accross. I often do that. Often when buying a stock, instead of buyng 1000 shs, I'll buy 900 or 1100, so I can see it cross the tape. Don't know why it gives me so much pleasure, but it does....LOL.... Thanks for posting the tape, BTW. I can't cut and paste from my software unfortunately. good weekend all.