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To: Sam Scrutchins who wrote (11801)	4/18/1998 6:52:00 PM
From: Don Green	Respond to of 213177

Randy, Sam is totally correct, market makers have a great deal of control on a stock's movement. Remember supply and demand determine a stock's price, if you can control the flow via a bottleneck you can control the price. You must also consider how options can add pressure against the stocks price, they also play a major role in the movement of a stock's price. Sam you obviously been watching them MM awhile. Regards Don Green

To: Sam Scrutchins who wrote (11801)	4/18/1998 7:12:00 PM
From: Bill Jackson	Respond to of 213177

Sam, That is why they fight the electronic clearing house so adamantly. Brokers are an anachronism and can be totally eliminated by an order matching system, and they know it all too well. In anorder matching system you get to see all the bids and offers in an array and you can buy/sell the one you like and the cash is cleared through the secure order matching system. No sleeps, no credit, no waiting, and no spread!! It's coming.The only case against it is all the unemployed brokers would have to sell their BMWs and it would bar crooks as they would have to buy.sell the same way. No more boiler shops(maybe) Bill

To: Sam Scrutchins who wrote (11801)	4/18/1998 7:15:00 PM
From: Randy Tidd	Read Replies (2) \| Respond to of 213177

People always blame the MM's when the stock price does not move the direction they want it to -- when the price falls or fails to rise, all the buyers complain that the MM's are forcing the price down. When the price moves up, they don't mention the MM's, they say that the company is awesome, has a brilliant CEO, has a great product, they're great traders, the stock has formed such-and-such TA pattern, etc. The MM conspiracy theory is just a rationalization to make someone feel better when their trade isn't working out. The scenario you mention with AAPL is interesting, but even if it were true, what does it matter if someone manipulates the price by 1/2 point, less than 2%, and for just a few hours? Perhaps if they are controlling huge amounts of money, they can get a lot of 0.50% - 1.00% profits or something. I figure plenty of that goes on with people controlling the spread anyways. But does that really affect us regular investors? Do you have enough money tied up in hourly or daily trades that this is an issue? If so, maybe you should try playing craps or roulette instead, the odds are probably more in your favor. Warren Buffett is known to make all of his investment decisions based on the stock prices in the newspaper -- i.e. he only needs the daily quotes, not by the hour or minute. If you can find someone that became a multi-billionaire from short-term trading, maybe I'd change my mind, but all of the successful investors that I know of have a trading time frame much longer than a few hours or days. Randy