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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Spaw who wrote (5738)	2/24/1999 7:35:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 29970

Goldamn is working a large order? You don't know that. The other market makers don't know what Goldman or anyone else is doing. So how do you? What they and you see is the market b/a, x by y. You don't see or know what is away or held in memorandum. you don't know the depth or breadth of the book. No one does over-the-counter. Let's assume that someone is "working" an order. E.g. you believe Goldman-Sachs' market maker is holding an open order to buy up to some limiting quantity market orders to sell. You may choose to believe that this supports the market, but that is a very poor assumption, because the broker can back away according to discretion. If the broker doesn't like what's developing, they'll back off and let the shares find a home with someone else below, someone willing to buy on instruction. They also may end up picking up shares for other of their clients booked below. The only inference you can make is that if the market is stable at some price level, the broker will be able to fill the order completely at that level. Tells you zilch. Now I know you want to believe that if some big guy is willing to buy at the current level, that it means the shares will rise. This is built on the specious claim that big guys know more. Nothing could be further from the truth, although the public would love to believe that sort of thing, because then they can rationalize their failures by saying the big guys did it. The big guys make it rise and the big guys make it fall. Wrong. The little guys determine price. It is the marginal forces on a stock, the white noise, which produces the price biased error. You will find that the big guys buy at the top and sell at the bottom. It is the failure of price to advance at tops and bottoms after big guys have executed which divulges that the market is very near to having reached the price action denouement.

To: Spaw who wrote (5738)	2/24/1999 8:46:00 PM
From: LLCoolG	Read Replies (1) \| Respond to of 29970

Spaw, VERY astute observation. Goldman has a distinct history of running stocks when they stay on the bid side. They are doing the same here for Inktomi, and did the same thing goosing PeopleSoft in 1997. I have made a lot of money following that pattern. I am sure that hypothesis will sit well with the supremely educated investors on here, but I appreciate your input. Frankly, I never knew Goldman was that big a MM for this stock, but I will look into this further tomorrow. Thanks. G