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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (3001)	5/8/1998 8:11:00 AM
From: John Hunt	Respond to of 4969

Market Maker Fun & Games Steve & all, Yesterday, using a MB Trading ARCA limit order, I bought 1000 shares of a $11 Nasdaq stock as a daytrade. The buy was filled by one market maker. I sold the stock about 3 hours later at market using ARCA. The bid price was the same as I bought it at. An ARCA market order is different from a true market order in that it sequentially presents limit orders at the bid price, until filled. This minimizes the chance that a single market maker will put the boots to you, although the bid may change during the process. Sale of 1000 shares took 3 market makers to fill it (100, 100, 800) even though the stock and the market were stable at the time and about 8 market makers were on the bid each showing 1000 shares. Considering many of these market makers are subsidiaries of major brokerage organizations, this is pathetic! Imagine what will happen during a major drop. I can see hundreds of limit orders piling up, while market makers each take 100 or 300 shares, then take their 90 second allowance to re-bid. Very little actual limit trades at any price until the market falls substantially. This is equivalent to not answering their phones in 1987. So my conclusion is beware trading anything long in any substantial market decline, no matter how good the news is. Any thoughts. John

To: steve goldman who wrote (3001)	5/8/1998 3:45:00 PM
From: dwlima	Read Replies (1) \| Respond to of 4969

i read your post to bob regarding a high ratio of sells to buys. unfortunately altough i have a good understanding of finance and economics, i have a rather poor knowledge of the inner market workings. how do buy and sells get recorded? if an market maker sells 1 share of his own inventory to the public, does that one share shwo up as a buy and 1 share as a sell. i guess what i am asking is since each transaction has a buyer and a seller, how do we see more sells than buys or vice-versa. david

To: steve goldman who wrote (3001)	5/8/1998 7:49:00 PM
From: Craig Richards	Read Replies (1) \| Respond to of 4969

Hi Steve, First of all, thank you for sharing lots of valuable information on this thread. I have some questions about secondary offerings, and how they work. How are the date and price of a secondary determined? How can I find out in advance what the date and price will be? Do the shares of the secondary show up in the ticker and/or get reported in the daily volume of a stock? Is the secondary usually priced at, above or below the market? Who participates in a secondary? Do they know the per share price when they commit to buying a secondary offer? If not, can they back out when they find out the price? Any suggestions on what to look for with respect to a secondary to determine future stock price direction? Thanks, Craig