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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: James H. Irwin who wrote (3045)	10/22/1998 10:39:00 AM
From: HairBall	Read Replies (1) \| Respond to of 8307

Jim: I suspect, "they" have been reading your post and another momentum push is in the works...then what...lookout? Guess you did not know you had so much influence...heh? <g> BWDIK Regards, LG

To: James H. Irwin who wrote (3045)	10/22/1998 10:42:00 AM
From: Kip518	Respond to of 8307

JI, my vote -- MM manipulation. Price moved up on fairly low volume. MMs bought a potload of shares yesterday during the selloff. If there is any bang from the presentation they'll be flipping them quick. If not, then they'll just have to hold the price up for awhile til they can work off they inventory. Kip

To: James H. Irwin who wrote (3045)	10/22/1998 10:54:00 AM
From: Rommy B.	Read Replies (2) \| Respond to of 8307

James, in answer to your question, let me respond with how I've learned it: When EGGS went up 55% a few days ago on high volume, MM were forced to sell buyers shares. Now if a MM runs out of shares to provide, he can refuse to accept the order (and then get a bad reputation with brokers) or he can sell shares that he either borrows from other MM or that he doesn't have at all (naked shorts). Now, in either case the MM was "forced" to short the stock as it was climbing up. The following day MM try to do their best to make the shares gap up at the open to lure in a few more traders at high prices. Now the MM is still shorting, but at prices he likes. Then, BOOM, all of a sudden the price breaks and EGGS goes down. Even when it tries to climb back up again, there is so much resistance at the 9 level that it looks as if someone is making sure that EGGS won't pass that level. EGGS falls down and all the novice day-traders who bought at the 8-9 level panic and sell (to the MM who is now covering his short position) at a lower price. The very next day EGGS goes down even more and nervous traders make sure to sell their last shares before EGGS goes to zero... Some "smart" traders decide to get into the action and short EGGS at 6. Now the MM sees that there are too many shorts around... So what to do? Initiate another dead-cat bounce. Now not too many traders are interested (once bitten twice shy) so the volume ain't that high. But the MM still gets nervous shorts to cover and even some new buys out of traders who think EGGS will hit 9 again... What the MM doesn't count on are people like me who learned the hard way what's going on and shorted 5000 shares today at 6 15/16. I may be wrong, EGGS may actually go higher than 7 before collapsing, but not much more than that. Any stock that gets played so much is bound to go down sooner or later becase invesotrs finally give up on them. Can I be wrong? Sure, maybe there is no such thing as a MM, but as long as this model helps me earn money, be it. Best to all, Rommy