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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (20372)	12/10/1998 12:59:00 PM
From: manohar kanuri	Respond to of 25960

OT Robert, And we meet again. :) just give them their eighth or quarter and they go home happy. Barring a few, looks like all of SI is divided into the conspiracy/not-conspiracy camps. You'd think people would sit and do the math on millions of shares a day times eighths and quarters? Apparently not ..... conspiracies seem so much more interesting! mano

To: Robert Douglas who wrote (20372)	12/10/1998 4:40:00 PM
From: Mark Ivan	Respond to of 25960

OT: Robert I'm not suggesting that the MM all get together for coffee and donuts in the morning and discuss were they wil take the price. And the fact that the are in competetion (as you state) has a lot of merit. But I believe there is a certain "protocol" they all follow. Think about it. You're a MM. You have you little black book in front of you showing all these stop loss, buy stop, limit, market orders. You see a ton of stop loss orders at 17.5. You have a ton of money at your disposal (you have to to be a MM). We'll you just short your little butt off (no uptick rule for you, no sir), bring the price down to the stop losses, execute them to cover your short and stabilize the price. During this big drop you attract the momentum shorters. Let them short now, meanwhile buying for your inventory. Now take the price up, shake out the shorts who now cover by buying from your inventory. I am sure it is not that easy. The point is, they know the market. They see the size and types of orders. They have LARGE sums of money to work with. Look at it another way. A company releases bad news. People start selling. Someone has to buy those shares. If noone wants them, who buys them. Well the MM must maintain an orderly market. And he/she is not going to lose money holding worthess shares. If we waited for a buyer for every seller, and vice versa, there would be no orderly market. Prices would be wild on thinly traded stocks. By and large, over the long haul, earnings and supply and demand drive the stock price though. I am talking about short term effects. My opinion and I will not say a word about it again. Go Cymer (at least stay at 17.5) Maybe I'll look at option open interest to see where we close this coming Friday. Ooops, another conspiracy. :) Mark