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NYSE specialists shorts are again on the rise - somewhat unusual for a market
which is so "oversold". Also, the latest weekly Fed report shows that foreign
central bank holdings of US treasuries continues to decline. Foreign central
banks have now sold about 15% of peak holdings in 1997.
Earl
-----Original Message-----
From: Dark Hacker <hacker@xxxxxxxxxxxxxxx>
To: felixty@xxxxxxxxxxx <felixty@xxxxxxxxxxx>; Stewart Taylor <staylor@xxxxxxx>;
omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Sunday, September 06, 1998 9:03 AM
Subject: Re: Taking Losses
>You wrote:
>> It all depends on your position. In the equities markets, don't the
>> specialists play the opposite side to the public's trades?
>
>But who is actually controlling the trade? It occurs to me that
>the specialists may from time to time allow the little guy to
>control the market. An example would be the public's penchant for
>"buying on the dips". After a selloff, the specialists would supply
>as much of an asset to the public as they want, driving the price
>up somewhat. The public is thus in control.
>
>Then the specialists begin selling large blocks, taking a few
>points relative to when they sold to the public, and driving prices
>down. Now the specialists are driving the trade and the trend
>continues down. The public gets stuck with these assets as prices
>fall.
>
>So, if you control large blocks of an asset and understand the
>psychology of the public, I imagine you could do more than just "be
>on the other side of a trade." You could control the trade and
>drive the market.
>
>- Hacker
>
>---
>Dark Hacker | Fortress Of Computation
>mail: hacker@xxxxxxxxxxxxxxx | web:
>http://www.computation.com/pub/hacker/
>
>Investment and Market Outlook:
> http://www.computation.com/pub/hacker/Investment/index.html
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> http://www.computation.com/pub/hacker/Bishop/index.html
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