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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (17371)	9/16/1998 4:09:00 PM
From: OtherChap	Read Replies (1) \| Respond to of 164684

It was fascinating to watch the action today in AMZN. I've got level 2 data and for the first time I was able to watch a squeeze in action. Everyone could sell all the stop loss orders on tons of short shares and the MM's just kept knocking up the bid until it triggered the auto-cover programs. Suddenly you would see literally 200 trades in 10 seconds, each around 100-300 shares. Then they'd move it up to the next level and you'd see the same thing again. The problem with AMZN right now is that shorts have made such incredible profits over the last 3 weeks that they are too quick to cover. Having all those september puts out there expiring worthless on friday is a nightmare to the shorts, so they were covering like crazy. Me, I covered late this morning with huge profits, and I was intending to buy back in towards the close today, but it looks like the squeeze was just getting up a full head of steam- tomorrow all the people who are short and see the quotes in a newspaper are going to freak and cover some more. We could see 100 tomorrow. I don't think I'll re-buy my puts until after friday. The squeeze is just to great until then. If I had held my puts after 11:45, and through to the close of today, my net worth would nearly have been cut in half. I feel like I dodged a bullet. :)

To: McNabb Brothers who wrote (17371)	9/16/1998 4:15:00 PM
From: Olu Emuleomo	Read Replies (1) \| Respond to of 164684

How are you gauranteed to make money if it hits $96 or even $90? This is a layup. I'll short the common at $96+ and put in a buy to cover, limit $80. Cha ching!!! --Olu E.

To: McNabb Brothers who wrote (17371)	9/16/1998 4:59:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 164684

Hank, I see the COMMONMAN has returned on cue. Odd that he didn't claim to have bought this morning though. Well, we have the "run-the-stops" theory for today as presented by OC. Someone else suggested that that Bill H. and fellow conference attendees rushed to the pay phones to buy the internuts after hearing positive comments. Any other theories? I'd have to agree with OC's assessment, considering that most shorts were nervous about an upward bias during expiry week anyway. The sudden jump in all the internuts at the same time implies that it was not based on developments at any one or two companies and the market's nervous attention being focused on Rubin and Greenspan made for perfect conditions for a squeeze. In any case, I do not believe that this surge in volume (and not just in AMZN) could be explained by anything but a short covering panic. Perfect conditions for the big guys to distribute what's left of their holdings. BTW, with AMZN still down 15% from it's price at the end of last quarter, not to mention being down 40% from its high reached the first week of this quarter, what effect will "window dressing" have over the next ten days? Do funds really want to show big holdings in AMZN come September 30? Just food for thought. Regards, Bob