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To: AHM who wrote (4789)7/29/1998 6:52:00 PM
From: Dominick  Read Replies (1) | Respond to of 12617
 
AHM:
one MM strategy I know of is when customers/traders put in market orders before the opening. The MM gaps up the price and fills the market orders with shorts then drops the bid which causes daytraders to panic. Then he covers his shorts on the way down.

Moral: Don't enter pre-market orders unless you really want that stock.

Another MM strategy I found out about was a MM would have a prearranged signal to other MM's if he was going to drive a stock down. In this case he would post two 200 share lots in a row.

But that didn't last long. The other MM's used it against him.

Oh well, back to trying to interpret MM's actions.