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<DIV><FONT size=2>While it is true that no one is going to stand in front of a
charging bull (or bear) for that matter and stop the market from moving that is
not their job, specialists on the exchange floor have an obligation to
sell/buy when there is a lack of public orders. Each stock is profiled
by the exchange and assigned a maximum price move on 3000 shares. If the
stock moves more than that amount on 3000 shares, the specialist is subject
to regulatory action, repeated violators will loose the privilege of making
a market in that stock and likely not be assigned any future stocks. Further
more the specialist is charged with rounding the executions on larger orders. If
a broker wanted to buy 10,000 shares and there were 9,300 offered, the
specialist usually sells the 700 to complete the buy order almost without regard
to market conditions. These men and women would consider not doing so
unprofessional. A further obligation of the specialist is to help
buyers and sellers find each other. This function has the effect of
removing some of the volatility from the stocks price action. You have a traffic
cop who can 'slow down' the volatile to ensure that all interested parties are
involved should they wish to be. It is interesting to note that function has an
opportunity cost as the specialist is not able to 'get between' the buyer and
seller and make a spread as they have likely traded with one another on the
exchange floor.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>As far as I know, NASDAQ market makers have none of these
charges.</FONT></DIV>
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</x-html>From ???@??? Thu Jan 27 17:36:13 2000
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From: "jdfo" <jdfo@xxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Subject: [RT] Pattern Smasher RSI Index
Date: Thu, 27 Jan 2000 14:55:38 -0500
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Status:
Thanks again to all those who gave me leads regarding finding the Relative
Strength calculations on stocks. We appreciate this.
One RTer gave us the Pattern Smasher as a suggestion. Anyone know where we
can find information on this software program?
Thanks
John
jdfo@xxxxxxxxx
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