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To: IngotWeTrust who wrote (283)	3/16/1998 4:37:00 PM
From: kimberley	Read Replies (1) \| Respond to of 603

Hi, Rose, hope you are feeling better... painting the tape refers to mm's passing stock around to themselves to make it look like it's trading there. it's pretty easy to check by watching the transactions (i.e. several small transactions going at the ask). it's a good way to get folks to buy short shares... remember the mm's can see more size than most people, so the direction a stock is headed is usually pretty apparent. hope that explains it... I think I trade better than I teach<g> best, kim

To: IngotWeTrust who wrote (283)	3/16/1998 7:57:00 PM
From: Dr. Seuss	Read Replies (1) \| Respond to of 603

Kim is correct. Just to add another angle to this discussion... This doesn't always apply to the MM's moving shares around. I sometimes use the term to explain folks who buy (for example) relatively few shares of stock at, say, 10 1/2, when the ask is 10 3/8, thus "painting the tape" higher than the actual bid/ask. Why would anyone do that? Well, if you are about to unload a whole bunch of stock, why not pay a few cents more for a few shares to make the days high look higher than it really is/was. For some folks and some momentum players, it has the psychological effect of making them think the stock is starting to run up. This causes them to buy and allows the folks dumping to create a bit of buying to sell into, holding the price higher, longer. In basketball, it's like a head fake. Act like you're going one way and then go another. I was watching real time and shares were being bought 3/16 to 1/4 above the ask. Whomever is manipulating this stock was trying to give it the appearance of another run up. Then, the volume picked up and the stock dropped a buck. I wonder who was selling? I double my short position right at 10 1/4 and covered half a few minutes later at 9 1/4. It was actually the quickest buck I've made in a while. If I see it happening again, I'll post another note to this thread, but don't kid yourselves, the folks who are playing this stock must read SI, so they'll probably try to run it up after the next tape painting to make me look bad. Perhaps I'll go long next time???? This is all psychological gaming, but in the end, this stock will be trading in the low single digets. A steady short can make some money on this one. I don't think there is much up side to this stock. dr.seuss.com