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I haven't heard of Lazlo Birnyni's Money Flow, can you point me in the
right direction to find out about it? Is it progammable in Metastock or
Quotes Plus?
Thanks for this informatiive posting. It confirms what I have heard over
the years and then some.
Lionel
-----Original Message-----
From: Rick Mortellra <rmjapan@xxxxxxxxxxxxxxx>
To: MetaStock List <metastock@xxxxxxxxxxxxx>
Date: Tuesday, August 11, 1998 3:02 AM
Subject: Re: accumulation/distribution
>Harley,
>
>To say that by watching prices all day from the comfort of your easy chair,
>even if they are in real time, you can discern what's going on behind the
>trades is folly. It's like watching a poker game with all the players
hidden
>behind curtains. All you see are chips being moved around the table.
>
>As you alluded, about the only thing that can be seen is if the Bid or Ask
>is being hit in size or not. While this may provide some gauge as to Buying
>and Selling pressure, you can never be sure what's causing it, i.e.
customer
>orders, offsetting orders due to options/futures activity, or just a market
>maker/specialist balancing his "book" or taking an outright stake in the
>stock. Further, you can't even be sure the trade represents a single order
>or several orders lumped together. Of course, exchange order tickets are
>clearly marked Buy, Sell, Sell Short, but only the orders Floor Broker and
>Specialist see it and it's not transmitted on the tape.
>
>That said, there is info that can be observed by the Floor Broker on who's
>doing the buying and selling and at what size. This is the kind of "inside"
>info the Floor Broker passes back to his trading desk. This info, when put
>together with tidbits gleaned from competitors, rumor and innuendo allows a
>trader to take a read on the tape and possibly gain some advantage. On the
>NASDAQ, customer trading desks play cat & mouse all day long with market
>makers. Good traders learn the "tells" in the voices of their
counterparties
>on the phones. It's something that can't be transmitted thru a computer
>screen to your living room!
>
>That's why some institutional traders who "retire" to trade from home fail
>miserably once they lose this insiders perspective. It's also why
>institutions go to great lengths to disguise their trades. A good example
is
>the program trades we hear so much about. A broker will actually even pass
>these massive orders thru his competitors to hide its intentions.
>
>Bottom line is that all these accumulation/distribution indicators (except
>for perhaps Lazlo Birnyni's Money Flow) are basically just "fun with
>numbers."
>
>regards,
>Rick
>
>
>
>-----Original Message-----
>From: Harley Meyer <meyer@xxxxxxxxxxx>
>To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
>Date: Tuesday, August 11, 1998 6:43 AM
>Subject: Re: accumulation/distribution
>
>
>>Al,
>>After a few moments thought and with a little logic I think have the
>>answer. First of all we know that when we place an order to short on the
>>NYSE the pit knows if it is a sell or short. Otherwise there would be no
>>waiting in the (short) queue for our trade to be executed.
>>So if Merrill Lynch is the firm supporting the inside market their pit
>>person would know.
>>
>>So this solves the NYSE question. The NASDAQ might be no different. Two
>>experiences. I had placed an order to short on the inside market and the
>>order was not taken by a buyer. I called Datek and the person explained
>>two things: one that they didn't have to trade with on instinet and two
>>that they might want to trade with because they didn't want me to short
>>the stock. I didn't ask him how they knew I was shorting the stock. But
>>on my statements when I have turned a trade from long to short or vice
>>versa the shares on the transaction are generally split and the
>>transactions occur at different times.
>>
>>Maybe some one else can shed some light on this as well.
>>
>>Harley
>>
>>Al Taglavore wrote:
>>>
>>> On a post of 8/8 in response to an inquiry from Michael, Harley Meyer
>>> wrote:
>>>
>>> "......The large
>>> interest who is supporting the market on the
>>> inside is running low on resources and does not
>>> want to spend those resources on some one shorting
>>> the stock as opposed to eliminating someone who
>>> already holds the stock and is going to sell it......"
>>>
>>> I have been reappraising the values that I place on volume, after
>observing
>>> that all volume "is not created equal". My question is how can those
>>> supporting the market determines if someone is selling short or holding
>the
>>> actual stock?
>>>
>>> Al Taglavore
>>
>
>
>
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