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see, the subject gets too complicated here
and without deeper understanding you start
hearing lotsa "not true".
of course it's not just the number of buyers...
demand is measured by depth - number of buyers
at inside bid, number bid for each buyer and
therefore: total demand - number of contracts, shares bid
including all buyers.
there are also two types of demands at inside market:
at bid - those that are bidding the bid and
at ask - market orders taking the ask.
equally, two types of supply.
go figure...
sure one local can just create expectation by
bidding it up. he can also create expectation
just by showing up. he can also keep reloading
if he's got deep pockets.happens all the time.
and sure you can pull your bid out anytime
and have the price come in more.
but you, pulling the bid out lower =
demand disappearing at current inside,
means price goes where?
i can tell you a lot more tricks in this business.
on the floor or off, in the pit or on l2 screen,
does not matter, still in each case demand
supply law is THERE and working 100%.
weak hands want out, because they expect
the price to go against them, will therefore
fulfill the expectation by increasing supply
or demand, depending on which side they
are on. you pulling your bid - you expect
the price to go where? lower....
otherwise why are you pulling your bid?
market does not go up when you pull your bid.
and if you are increasing your bid you are
working against youself if you want to buy
and in favor of them going out selling into your bid,
taking profits. and if they are shorts, then you better
already be long or you end up buying the top
and if you are long then i understand what you
are trying to do...
happens all the time, too.
in fact most markets are bid up and one
sided when price goes up. you got lotsa
buyers lined up at the bid trying to buy,
including you, unable to get execution
and chasing the market....
supply and demand is often one sided.
i am done about this topic, it hard to explain
in layman's terms and without math.
----- Original Message -----
From: Mitch Hagaman <mitchh@xxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Wednesday, June 21, 2000 9:42 PM
Subject: Re: A Quick Poll
>
>
> On 21 Jun 2000, at 20:31, Bilo Selhi wrote:
>
> > more sellers than buyers will push the price down.
> > more buyers than sellers will push the price up.
>
> Not true. First, fifty one-lotters could be selling and one large local
> could be buying, thus supporting the market. Second, if weak
> hands want out, THEY WANT OUT at any price. So if i'm the buyer
> I may charge them more to get out, causing the market to go up.
>
> Mitch
>
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