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To: H James Morris who wrote (30977)	12/23/1998 10:38:00 AM
From: KeepItSimple	Read Replies (1) \| Respond to of 164684

>Yes and that's why for the first time I left the lid off my long shares. I personally think the "gap open 20 and then go nowhere" pattern of the internut stocks could create a scandal in the near term. You see, this kind of manipulation cannot occur on the NYSE because they don't allow the changing of bid or ask before the bell opens. On the Nasdaq, a few market makers can purchase a few thousand shares of a stock when there are no sellers (because they all agree not to sell before the bell) and jack the opening price up 20 bucks a day. On the NYSE you can only get "indications", but no real trading occurs until the stock opens for EVERYONE to trade. The entire reason the NYSE has this rule is to stop unscupulous market makers from manipulating stock prices. The Nasdaq lets their MMs do almost anything they want. I'll have to crunch the numbers through some charting software, but from a 5 minute look over the last 2 months worth of price action on ebay, yahoo, and amazon, EASILY 90% of the upward movement occured before the bell. In other words, 90% of the mania rise could be attributed to Nasdaq market makers stacking the deck. If they can get a high open price, if even for a second, they can force shorts to cover. I'll wager the nasdaq cracks down on this sort of thing very shortly. I cannot be the only person who has noticed this activity.