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Technology Stocks : SFLK -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Hendren who wrote (358)	2/2/1999 12:32:00 PM
From: Eric Fader	Read Replies (1) \| Respond to of 1591

Johnny - That was, in part, a self-fulfilling prophecy by Lucky. Even if Lucky is not in some way affiliated with a MM, he's been doing this a long time and could see that the volume was drying up a bit, so he figured he'd try to help induce a drop by injecting some uncertainty into the thread. MMs look for lulls like that, too, to drop their bids to try to pick up cheap shares to cover the stock they shorted during the preceding run. The spreads are kept very wide, too, at those times, so they can pick up some extra bucks. Once the MMs have reduced their shorts to comfortable levels (not necessarily flat), OR once real buying starts to come in, you see the MMs slowly start raising their bids again, and then it's time for the next run. -Eric