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05/01/10 6:05 PM

#30934 RE: jaynise #30932

No. Everyone was buying yesterday but the market makers understanding the previous trading history aren't so bullish on a steady yet sustained climb in the stock price. In order for them to hedge themselves, they short the stock considering the possibility of the stock dropping. However, given that there were all buys and no sells, it leads me to believe naked short selling took place. Otherwise, we would have experienced activity on both the bid and ask prices. When an MM undergoes NNS, they have 13 days to cover before the failed-to-deliver starts showing on the REG SHO List. Naturally, they will cover before hand in order to avoid any penalties by the regulating authorities. We individual investors have the ability to conduct research into a company beyond the scope of a MM's research, simply because they mainly rely on imbalances between supply & demand in the short-term. If the buy pressure continues, then the MM's will deduce that the stock price has potential to ascend further for whatever unknown reasons the market forces dictate. I hope this elaborates on my previous posting.