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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (10021)	11/2/1998 10:25:00 AM
From: Colin Cody	Read Replies (3) \| Respond to of 19331

For those who care about how the Market works, today you can see the MMs were shorting and are now attempting to cover. Right now they are betting DCTC will drop a bit. We will see the spread widen as their RISK becomes greater. If you look at this morning's trades you'll see a lot of buying going on. Nearing 10am the buys were large and there was no selling to provide a supply of stock. Now they could have just raised the price to $2 and stopped the buying, and killed the liquidity of the market. But that isn't "right". What they did was raise the price REASONABLY and sold nonexistent shares, hoping to cover in a little while when a seller does appear. There's no seller right now. Sooo they need to "scare out some stock" but dropping the bid. Here they WANT to buy shares, yet they bid LOWER for them!?? That's to make people think the stock is dropping, and so they'd better sell. At the same time since no sellers appeared, the ASK will rise a bit to offset the increased RISK. This sort of cat & mouse activity is good for the market. It creates liquidity and maintains an orderly market. Remember if the MMs don't make money there wouldn't BE a market for the stock. Colin