Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Andy Turk who wrote (42462)	5/15/1998 8:44:00 PM
From: Ben Antanaitis	Respond to of 176387

Andy, It's called 'strike pegging' and here is Jim Cramer's explanation of the when and how of it: archive.thestreet.com Ben A.

To: Andy Turk who wrote (42462)	5/16/1998 12:22:00 AM
From: S. Chiang	Read Replies (2) \| Respond to of 176387

Re: << I like the conspiracy theory, it sounds interesting. But I have a dumb question: Can someone explain the mechanics of how MMs actually drive the price down or to a certain level? >> It's fairly easy. First, you sell (or buy) a large amount of equity at market and move the stock down (or up) to somewhere around your target price, lets say 90. Then you place a considerably large amount of limit buy and sell orders at 90, so you can keep selling stocks to yourself at 90, and have it closes right there (Big boys don't need to pay commission). Any small orders placed by the little investors like us will be sucked up by the large ones. If you have NASDAQ level II tools, you should be able to see it much more clearly. I've seen this for so many times at options expiration day. Someone on this thread just don't believe MMs have the power to move a stock to a certain point. If most of the MMs have the same target price and do the same trick, the closing price will stop right there, no more no less. Only time will tell who is the kettle and who is the pot, no matter what they mean. LOL!

To: Andy Turk who wrote (42462)	5/16/1998 1:09:00 AM
From: Gary Wisdom	Read Replies (2) \| Respond to of 176387

Re: <<On the power of the MMs...>> One more thing to add to this discussion. The market makers do not have this power unless the institutions "play along". So, I ask you: if the big money guys start to see the market makers push Dell to $90 (pin price at maximum options screwing), why would they start buying the stock until it got down to $90? That would be stupid. And these big money guys are not stupid (they just don't know how to beat the S&P <ggg>) Today was like the day after Christmas. Big money players knew they could buy all the shares of Dell today at $90 that they wanted, all the Intel at $80, all the AOL at $85 and so on. Stocks get pinned because the big money players are more patient than we are and know the games better than most retail investors.