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Re: forgreen post# 10916

Friday, 01/26/2007 12:54:46 AM

Friday, January 26, 2007 12:54:46 AM

Post# of 131532
Tradeswapper,

Sage advice my friend, you hit the nail on the head in your description of market maker tactics. As I believe I have stated on the board before I was a floor trader on the NYSE for Schwab myself for several years until two years ago when UBS bought out the capital markets division. More importantly, my sister also worked for Schwab on the otcbb desk and now is at Hudson (HDSN), although I should say INXR is not on her list. I can tell you that much of what you have stated is spot on and whether or not the mm holds a position overnight depends on the the skills and risk tolerance of the individual trader trading that stock for the firm, as they have their P & L in mind at all times. I can also say that a market makers main weapon in killing a run, if they don't have a long position, is the short. Any time an otcbb stock has a run the trader asks himself/herself is their any substance to this run and if the answer to that question is no, then they will short into that run ultimately driving the stock back down to its previous levels or lower. If the answer to that question is yes or if they are lucky enough to be sitting on a long position, then the market maker just sits back and lets the stock run its course. If you translate that mentality to INXR, I feel that most market makers will be hesitant to short into a run once it starts because there will be too many positive developments (otcbb listing, licensing by broker/dealers, possible buyout)yet to come. In short, I also expect a major run into the multiple pennies with this stock and as funds become available to me mid next week I will be confidently accumulate more of INXR. This is all in my opinion, of course. I would also like to thank you and many on this board for your very informative and entertaining posts. Have a great night.