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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Lurker who wrote (2733)	9/8/1998 5:08:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 18998

SOES - Nasdaq Small Order Execution System This system was set up as a response to the scam NASDAQ market makers were pulling by colluding to rig the bid-ask spreads on many stocks. SOES permits traders to compete with market makers on the bid and offer. For example, if 4 MMS are all at 100 on XYZ, you can come in with 100 1/16, and you will get filled first (up to 1000 shares at a time). SOES traders then try to score a quick gain by offering the stock a touch below the best ask seconds later. This way you can scalp $50 here and $100 there. If you do a lot of trades a day, it can add up. Unfortunately, you can also lose lots of money too because spreads have become much narrower and you are competing with hundreds of other gamblers at the same moment - this is why SOES traders flock to very volatile stocks with wider spreads. I pointed out the trading activity in TNSI during the late afternoon. Pull up the 1 day chart and check out the price/volume. SOES traders pile in quickly, but they usually don't hold their positions overnight...that's why the stock pooped out towards the close and no upticks were available. In the long run it doesn't matter. TNSI is an ultra dog and should be shorted at any price in the double digits.