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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Porter who wrote (19360)	7/19/1998 8:55:00 PM
From: joe	Read Replies (1) \| Respond to of 45548

Steve, >>I have to disagree with you. See my message to victor.. MM's also control price by selling very small numbers of shares. Like I explained a 100 share trade moves the ticker just as much as a 100,000 block trade does. With 10,000 shares (selling in block of 100-1,000) on the way down and the executing a block buy for 10,000 at the new low price, let it run up a bit, and then sell them back in.. repeat...<< I don't thing we disagree. (My post last friday may have been confusing...I was pretty tired, so I may not have explained myself well). But, I agree with you that the money managers (these would be the institutional players Iwould suspect; they also could be the market makers...my understanding is that these are the guys that do the actual trading to buy the shares, and maybe they have an agreement with the fund managers to buy the shares for a certain amount...) could be doing some selling when the price starts to go up. This is consistent what I am saying (thinking). This would encourage other sellers to sell....sellers being a) short sellers, b) traders who know what's going on and are trading it back and forth between 28 1/2 and 30, or, c) people who are getting very frustrated seeing the stock go down after a good earnings report and get scared or frustrated into selling, d)possibly others who see they can make more money somewhere's else with the Naz skyrocketing upwards. So, you make a good point adding the MM's as sellers (small lots) to bring the price down. (This hadn't occurred to me.) But, I'm saying there's also others selling. If it's just the MM's selling, they would only be rebuying their own stock. The best way to describe it, I think, is that most of the buying are block buyers,(even if they're sneaky and buying in small lots...they're still essentially block buyers) and lots of sellers which could be either small lot sellers or block sellers. To make it even more clearer, there are now a good amount solid buyers who will eventually be pushing the price up. Does this make sense? joe