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To: jhg_in_kc who wrote (2187)	12/2/1998 12:19:00 PM
From: HECTOR RUBERT	Respond to of 4903

Just about all online brokerage firms were down during that time and access to trading was very limited if not unaccessible. This was not one company but the entire sector. They knew what was going on and what was about to happen. MM's knew of the net margin restriction news way in advance and targeted their shorts positions at the early morning rally. When the added shares were thrown in the supply and news broke out, the buying frenzy slowed down. Since the buying couldn't maintain due to their weakness and the excess supply of shares due to shorting, the crash was on. Plus, the many stop losses set by investors just added fuel to the free fall. It was a domino effect that could not be stopped. A lot of people that set up stop losses lost over 40pts from their stop loss price. I've seen this before and never set stop losses on small float stocks for this reason. The executions are always a lot lower than your price. Small float stocks should only be sold on their way up and NOT ON THEIR WAY DOWN. Hope this answers your questions. Hector

To: jhg_in_kc who wrote (2187)	12/2/1998 2:09:00 PM
From: zurdo	Respond to of 4903

They could short against the box (working in concert, which they often do)knowing they can cover later when the rabbits get scared and sell..In the meantime, they can buy even more shares at lower prices than where they sold short...It would not take too many MMs working together to do this...Of course, the greater fool theory also works in reverse, and these MMs are very vulnerable to a SHORT SQUEEZE at this time....If there is sizeable buying pressure now, these stocks would soar!!!..JMHO