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Microcap & Penny Stocks : Tonto and Janice Teach Investing -- Ignore unavailable to you. Want to Upgrade?

To: scott bradley who wrote (127)	3/23/1999 10:59:00 AM
From: Henry Volquardsen	Respond to of 302

Scott, opening order imbalances happen pretty regularly, there will be some every day. It is generally in response to news that is likely to have a significant price impact. When news comes out during the day the market can generally respond smoothly. Each new order comes into a market that already has active price discovery taking place. When news comes out over night the market can't respond. The next morning all the orders will hit the specialist at once and generally right before the open. When there is a significant imbalance of this sort it may take the specialist some time to match up all the various order to see where equilibrium is. In these circumstances the specialist goes to the exchange and requests a temporary halt. This give him time to match everything up and find the appropriate price. These halts are generally of short duration. The Nike halt this morning was 20 minutes. Hope this helps. Henry