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

To: Kevin Hamlin who wrote (3289)	6/16/1998 8:45:00 PM
From: steve goldman	Read Replies (3) \| Respond to of 4969

Kevin, Cross of large pieces are usually arranged and negotiated before they go on the tape. two items: someone with a large interest is selling yet someone is also comfortable buying size. Question is, who will have more influece...does seller have a lot more to go or will buyer chew up everything in sight? Typical ...nothing is typical on the street but you have to try and understand who the seller was, why they were selling and if the buyer wasnt covering a short. Also, how do you know which houses bought and sold what? regards, steve@yamner.com

To: Kevin Hamlin who wrote (3289)	6/16/1998 9:23:00 PM
From: Darren	Read Replies (1) \| Respond to of 4969

House A buys a total 1.3 million, sells 900,000 House B buys a total of 263,000 and sells 150,000 House C buys a total of 406,000 and sells 341,000 House D buys a total of 247,000 and sells 202,000 My questions are these: 1) Is this "typical" of anything? 2) Why the incredibly tight trading range? 3) Is this a signal of something still to come? 4) Why today? Was this "coordinated" some how? The correlation would be if House A was selling to House B, who dumped to House D, and then House A bought from House C, etc. The tight trading range is a result of the movement of shares. There was no one else to buy or sell the stock, or they were just frozen out unless they were willing to pay more or sell for less... The best thing to do is watch the Houses and see what happens over the next few trading days. You may find one is a 'Bid to Ask' or 'Ask to Bid' candidate when/if things ever get hot and heavy in the stock... a) It's typical of MM's who trade positions for whatever reason. b) See earlier about frozen buyers/sellers c) Most of the time, no. It's just banking... d) Most of the time, it's coordinated over the phone... The most important information you can gain from this is; Who is the Axe and where does he fit in? If you can figure that out, you have gained "insight."

To: Kevin Hamlin who wrote (3289)	6/21/1998 4:02:00 PM
From: Mark Myword	Respond to of 4969

>> Today a mining company, which usually does about 100,000-200,000 shares a day goes a little crazy and churns just over 3,000,000 in a very tight range between 5.10 and 5.20...no more, no less. The majority of trades are crosses of 50,000-200,000 shares, mostly from one house to the same house. These crosses continue throughout the day. There's really only 4 houses involved. House A buys a total 1.3 million, sells 900,000 House B buys a total of 263,000 and sells 150,000 House C buys a total of 406,000 and sells 341,000 House D buys a total of 247,000 and sells 202,000 My questions are these: 1) Is this "typical" of anything? 2) Why the incredibly tight trading range? 3) Is this a signal of something still to come? 4) Why today? Was this "coordinated" some how? Thanks for your help. Kevin Kevin - here's my view of the answers: 1) typical? yes, if the buyers and sellers are trying to set up boxed positions, that is, long in a cash account, short same # of shares in a margin account somewhere else. Then if the stock tanks, they can sell the long to get short. Happens every day. Maybe these traders know something. 2) The tight range is so the boxed position is set up at the same price, i.e. no gain or loss in the box. 3) Could be bad news coming, a fraud exposed , etc. OR , it could be the company is issuing a convertible, and buyers of the convertible are going to short the stock as a hedge. Typical converts arbitrage. 4) Definitely coordinated between the houses. No question. I doubt this is just normal buyers and sellers. Hope this helps.