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To: Sam Scrutchins who wrote (21673)	1/4/1999 7:04:00 PM
From: HerbVic	Respond to of 213173

From post number 21286 by Marc F. Derendinger: >>> Herb, a group of short sellers have been slowly covering their positions for the last 3-4 days. Watching Level II action, the same market makers play both sides of the spread. When it starts to get away from them, they look for resistance points i.e. 35.00 to make a stand. When the buying cools down, they jump inside the Ask to move it down a bit, then start buying again (probably to cover) until new buyers jump in (then they jump back to the Ask and make a stand until the buying pressure slows down). This process has repeated itself most of the week, the exception being there are new buyers in the market today. Last week, these market makers were willing to sell a lot of shares to drive the price under 33. This week they are much more interested in buying (covering) than pushing the price back. I suspect much of this recent stock activity is related to the recent trades in Dec. Puts and January Calls (just my opinion). I hope these traders are backing off as the Earnings Release approaches. Would not surprise me to see $37.00 next week. After that, who knows? <<< In my own words: This tactic will only work when the buying slows down. The MM makes an offer to sell a small block at just under the current ask in an attempt to draw out profit takers looking for the upward momentum to reverse. It generally follows a lowered bid. If they get any interest in selling at the lower price, they make another attempt to lower the ask, and another, as required to start the trend. Once the trend is down, they relax as the price drops until the buyers start to line up on the bid side, then start scooping up shares (covering shorts?). If the buying starts to drive the price back up, but is not that heavy, they then switch to the ASK with small sell offers at below the last ASK in an attempt to dry up the bidding. Sometimes it does not work. Many times it does. HerbVic