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To: MskiHntr who wrote (11188)	12/8/1998 2:19:00 PM
From: Martin E. Frankel	Read Replies (3) \| Respond to of 44908

Hi Joe, Good post, but I'm a little confused. You've often said that the MMs don't really have any control over the market and are there just to make the spread and earn their living. But what you have now posted seems to contradict that. From what is stated, the MMs can exert a very definitive control and walk a stock down by varying the spread, dropping the bid... even with small prints after a quick run-up. This being the case, there appears to be a contradiction in that the MMs obviously do have some control over the stock price if they time it right. Am I missing something? Best always, Marty << Some ways MM's entice sellers; Run the stock up with a "tight spread" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread. Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stocks up in the morning, averaging up their short then use the above technique to walk it down in the afternoon. Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over. Contrary to popular opinion, MM usually do not Cover in Fast moving markets either up or Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular. >>