According to the Securities And ExchangeCommission Report Of 1963 and I quote, " The Control specialists have on prices

is nobetter illustrated than at the openi ng. Although itis impossible to isolate one aspect of thespecialists activities as the most important, anyranking would have to place the arrangedopening high o n the list " .They go on to say and I quote "The heart of the problem with the Stock Exchange is thespecialist. If there was to be any reform of themarket it should be with the specialist" .It s sad to say but none of the findings or resolutions, which addressed speciali stshort selling, has ever been implemented.What the Commission stated was that w iththeir controlled opens and closingsspecialists were " rigging prices ". TheSecurities and Exchange Commission hasbeen a captive of the Stock Exchange andits insiders since its inception in 1934. Arranged Openings :There are five important ways thatspecialists handle prices at openings. 1) When you have a dramatic advance atthe opening while in the midst of a generally declining market. The function of thisadvance is quite simple. The specialist ha saccumulated an enormous amount of inventory during the decline, and what thisra lly does is two fold. A) It keeps the public from continuingselling at what are still retail price levels . B) It forces the public to rush in and buystock. This is what enables the specialis t tounload his inventory and sell short.It is still the basic scenario of wholes ale andretail merchandising. When they drop pricesthey are looking for the ultim ate wholesalebottom, possibly conducting several shortadvances along the way to unload inventoryand sell short. Once they have achievedtheir low wholesale prices and are flushedwit h inventory budging from there shelves,there next function is to rally to retail tounload the stock at its highs with severalshort declines along the way to re-stockinventory, before reaching the ultimatehighs. 2) The next opening is a dramatic declineas specialists approach to within 50 to 75 points of a rally high. The function of this isagain two fold. A) One reason you have a sharp declinelike this before you go to a high is becauset he specialist never allows the public, whichhas been buying at current prices to sell atthe highs. Before going to the final highs thespecialist will conduct no t one period of decline but a num