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The_radman

06/20/06 3:14 PM

#6371 RE: gooddoc #6364

Gooddoc "buy and hold" sounds logical as part of the solution but the missing ingredient is buy and hold "away" from the market. In other words if everyone bought their stock and called for delivery so as to hold it in "street form" it would not be available for the brokers and MM's to borrow from the pool of inventory to short against. When I use the term short against I don't mean it in the literal term of borrowing from the inventory then actually selling it but that inventory is used for other means. They use it to ghost the market to sway it in any direction they need. For example if they have a large block for sale they will strengthen the bids to encourage the lay investor (that believes he has a true handle on the market because they have level II) to buy off of the offer. The reverse occurs when they are buyers. I'm certain everyone that has level II has seen the markets position change drastically in a matter of seconds and scratch their heads as to what just occurred. Its a tough game for the novice thats why so few "investors" actually make a buck. as far as the company or its affiliate selling stock into the market most companies have the mind set that they're damned if they do and damned if they don't. The fact is there is plenty of "real" financing capital available for "real" deals, witness AENS today.