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Microcap & Penny Stocks : ICVI (now MTEI) -- Ignore unavailable to you. Want to Upgrade?

To: Rock_nj who wrote (7075)	6/3/1998 1:32:00 AM
From: Lee Walsh	Respond to of 11850

Rock nj, I'll answer your question for you...I've been gone since the markets closed this afternoon, just now catching up...whew, we need to just ignore the riff-raff, they would get bored, and maybe leave. Anyway to your question, "Was the BUY/SELL ration really 3 (buys) to 1 (sells)? If so, how could the price of the stock go down?!? I'm confused?!? I thought that buying caused a stock to go up?!? Yes, the buy/sell ratio was 3/1 What you have to understand is that BB stocks are highly manipulated by the Market Makers. If they think a stock has run up too fast, and so they think it will correct soon, like today, they will sell short to everyone who is buying. ie, sell stocks they don't have in hopes to buy back when and if the price goes down. MM's have this ability in BB stocks and we don't, although, you can short other stocks. When you see a level II quote screen you see bid x 5 ask x 5 Each MM has to be on both sides of the market (why he's called a MM!!) In a BB stock, the MM must set a price, and must hold that price until he fills his minimum that he shows (bid x 5) means he must buy at least 500 shares at this stated price. Then he can do 3 things. He can sit and buy more, he can go up, or he can drop out. With all these MM's only buying minimum of 500 shares before they can "pull off the bid" they can drop the price with only a small amount of selling. I'm rambling.....Is this clear as mud??? Lee Edit...Gotta get some sleep, looks like I'm the only one here...