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To: Mr. Jens Tingleff who wrote (1230)8/4/1998 3:21:00 PM
From: David Sirk  Respond to of 7609
 
every now and then they shake 200000 shares out. You know how much that 200000 shares will be worth in a month? There getting shares.



To: Mr. Jens Tingleff who wrote (1230)8/4/1998 3:30:00 PM
From: TraderGreg  Respond to of 7609
 
A common technique of our friend the MM is, prior to any run, to shake out all nervous types. Think about it, if they have people dumping near the low, how reliable would those people have been on a run up.

By bringing it down, they have turned over to some extent the mindset of the longs. First, they themselves have replaced the nervous types; two, additional buying support will be there as other MMs who are short must contemplate a covering price. The remaining longs are those who are true blue long and will continue to provide support by not selling and who will probably add to their position.

One has two ways of playing this. To try and catch the falling knife, as some have done since .02. This works if you're averaged in in the .02s. OR wait for the bleeding to stop and hope you can jump on the train.

TG