To: tk715 who wrote (1228 ) 8/31/1998 4:46:00 PM From: tk715 Read Replies (1) | Respond to
It looks like the MM have covered their shorts and stabilized the price. The price movement over the last couple days looks like a classic short cover by the MM's. During the runnup it was all buying, and shorting by the MMs. During the drop to 1.1 on Friday, there still was mostly buying. The high open each morning was done so the MMs could pull in the buy limit orders. Friday, they had to move to 1.6 to get the highest of the orders, then they promptly marched the price down to suck up the rest of the limit orders. With the buying frenzy of the last couple days, the only way for the MMs to get even was to continually drop the price. As they drop the price and pick up more buys, they continuously lower their break even price, until they hit the price where the weak hands start dumping their shares. When they went below .90 today, they hit the large block sales, and lo they hold the price and let the shares roll in. The price has stabilized and the volume has dropped to nil the last couple of hours of trading.
