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Post# of 358425
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zeninvestor32

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zeninvestor32

Re: None

Saturday, 07/24/2004 12:28:22 PM

Saturday, July 24, 2004 12:28:22 PM

Post# of 358425
A THOUGHT WORTH REVISITING

I posted this a few days ago and only a few commented on it. I see this as SIGNIFICANT.

From NITE's most recent quarterly results ...

" Knight's OTC and pink sheet volumes surged to more than $376 million in the second quarter, versus $47 million a year ago. Meanwhile, Knight's money derived from trading in Nasdaq and listed equities -- the most lucrative types of trades -- declined to $28.9 million from $37.3 million."

http://biz.yahoo.com/rc/040721/inancial_knight_1.html


Seems to me there are some numbers in there that should floor EVERYONE. A seven hundred percent increase in ONE YEAR in pink/otc trading???? Are you kidding me??? Why is NITE suddenly so heavy in the pink/otc market? I could understand a 30% increase or heck, even a 100% increase, but when you jump 7x the dollar volume in an area that is supposedly such a small percentage of the overall market, WHAT IS GOING ON HERE??????? Then, look at the total numbers. NITE's trading volume in pinks/otcs was $376 million out of a total of $405 million from ALL equities traded. THAT'S 93 PERCENT OF THEIR TRADING VOLUME FROM PINKS/OTCS!!!!

My personal guess is that they have been running naked shorts for some very large hedge funds that have been TREMENDOUSLY successful. Success begets success and these hedge funds IMO were making a TON of money and began to get much bolder in their moves. PLUS, as we know, the SEC began to finally pass some regulations (albeit weak ones) to curb naked shorting. So those that have read up on the issues surrounding the Berlin Exchange and the use of foreign exchanges to circumvent the new shorting rules probably can make the logical assumption that I do -- the hedge funds in this second quarter put the pedal to the metal on shorting pinks/otcs since they knew this game was only going to go on for so much longer before the SEC might effectively put some REAL teeth into regulations regarding naked shorting.

The jump of 700% in NITE's pink/otc trading is STAGGERING. IMO yes it is circumstantial, but it is some of the best circumstantial evidence we've seen I think as to what is really going on here. Again, I sincerely hope that CMKX is a true market EYE OPENER on what is happening and how average America is getting brutalized by some unsavory characters out to plunder blue collar Joe of hard-earned money. All just my opinion of course but a FORCEFUL one (JMFO?).

Z

As always, these are my personal opinions.

Hopefully nobody in here is investing anything but "fun" money that they can afford to gamble with.

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