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To: Witold who wrote (19427)6/4/1999 12:46:00 PM
From: RidgeRunner  Respond to of 40688
 
Witold, I was hoping that someone on the thread with Level II capability could track the relative strength (in terms of volume) between buys and sells. I'm not an expert in this and don't have the data flow to do it, but I have read elsewhere that it is possible.

The idea is to determine how out of balance (and which way) trading has been to get an idea of what the MMs might have to do to stay out of trouble. For example, if selling by the public has dried up (which it seems to have done in the last couple weeks), then any buying interest would have to be satisfied by the MMs who would either sell from their own inventory or sell short hoping to buy at a lower price later. If it is the latter, than at some point their exposure would be dangerously high and they would almost have to drive the price down with their small block fake sale technique in order to cover their previous short positions and avoid getting hurt if the price should surge higher.

Since I haven't gotten anyone to repond to this idea, I take it that no one has been tracking what I asked about.

Good Luck to all.

RidgeRunner