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Microcap & Penny Stocks : TPII - Year 2000 (Y2K); Groupware; Client Server Migration -- Ignore unavailable to you. Want to Upgrade?

To: Pierre Mondieu who wrote (5312)	3/24/1998 4:39:00 PM
From: Ice Cube	Read Replies (1) \| Respond to of 10903

The first rule a Market Maker learns is to always short into heavy buying because when the buying dries up, there will be some profit taking and the stock will trade down, and the MM will be able to cover at lower levels, and then make money. Call it "shorting" if you like, but they are giving you stock they don't have. An example would be SHRP (Sharp) on the offer from .38 to .46 giving you all the stock you want. Then, as the price drops and some selling comes in, he's taking in the stock (or calling other MM's to buy what they are taking in) and he hopes to make the profit. This is the most often used trading strategy a MM uses. Its taught the first day you walk in the door. Also, if a large block is for sale, a MM can buy it and cover that way. Also, Alan is right, the same MM's are on many of the same stocks. This is where they operate. You don't see the big firms in this area for obvious reasons.