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Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (5405)	8/6/1998 8:11:00 PM
From: William Epstein	Read Replies (3) \| Respond to of 7841

Stitch; Good timing but we don't know yet, whether or not, this is a specialist led rally or an investor led rally. We have had a couple of specialist led rallies in Seagate during the last year. The last big one brought Seagate to 29 5/8 and then when they had accumulated enough shorts they dropped it like a stone to 19 5/8. Specialists have different goals than investors. Usually, opposite. Remember, the 800 million volume 2 days ago. That was specialists covering their shorts and starting to go long. Short interest has been very high for a long time. It is well known that about 85% of all short interest is held or controlled by specialists for their book, floor traders and arbitragers, etc.. Short interest is the main tool they use to control price. They can get credit to hold shorts at a ratio of 1000 to 1, not 1 to 1 as is customary in most brokerage houses. You can't compete with that kind of leverage. Going short was never really meant for public use. As of 2 weeks ago Seagate's short interest ratio was still very high. The specialist was using it to keep the price down. Let's wait and see. William Epstein