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To: Robert K. Sims who wrote (6785)	7/8/1998 11:44:00 AM
From: P. Ramamoorthy	Respond to of 10786

Robert - Re.: That's a lot of "controlled" trading in NASDAQ What's your theory behind this statement. Could it be options? This is hard to figure out. My thoughts were - for a one-day trading of 800,000+ shares followed by increases to 200,000 shares on previous days, means that several people were willing to sell at the cheap prices 12-15. Why would anyone sell cheaply after reading earnings guidelines in the DJ wires? Were they shorting? But the price went up. Were the shorts overwhelmed by longs? May be. Longs would buy rather than sell when the prices are cheap and improved earnings are expected. If the shorts panicked and started to cover, they would have been buyers, not sellers. Shorts borrowed shares, sold them in the high teens (18-19)hoping to replace the borrowed with cheaper shares at 12-14. I expected more than 1 7/16 increase for yesterday's volume. The interesting part is the price did not explode yesterday. Rather, the increase was limited to 1 7/16 for trading 800,000 shares. This is odd. If the short size dried up, the share price should show an uptrend with earnings improvement. Let us see if this happens. Ram