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To: OpusX who wrote (1230)	5/20/1999 6:35:00 PM
From: Thure Meyer	Respond to of 1837

I'll have to look up the reference. I think it was an article by either Schwartz or Webber. I will find it by tomorrow. If I remember, the idea was that if the fundamental supply and demand doesn't change but is only perturbed by a liquidity event (say a fund buying 1,000,000 shares) the price shouldn't move since it was just a shift in assets. If on the other hand the supply and demand function changes then the price changes. Thure

To: OpusX who wrote (1230)	5/20/1999 6:49:00 PM
From: Thure Meyer	Read Replies (1) \| Respond to of 1837

Found it. Its a paper called "The Ecology of an Order-Driven Market System" Robert A. Schwartz, et.al. I can FAX it to you if you send me a private message with your FAX number. The key concept is a statistical process called "mean reversion", which is associated with short term volatility (Section 2). The paper is too long to quote here. What we are looking for in this stock are information events, like a recommendation, sales estimates, market share, .. that kind of thing. Although institutional accumulation is information is a sense (i.e., in the confidence sense), just the fact that large blocks are traded in the short term does not affect the underyling dynamics (IHO). Thure