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1223.80 was also first curbs today for the S&P.
----- Original Message -----
From: "Timothy Morge" <tmorge@xxxxxxxxxxxxxxx>
To: "John Clemens" <jbclem@xxxxxxxxxxxxx>; "John Clemens"
<jbclem@xxxxxxxxxxxxx>; <omega-list@xxxxxxxxxx>
Sent: Monday, April 23, 2001 4:56 PM
Subject: Re: Bid and Ask Size at a bottom?
> John:
>
> I can relate it to something I often saw before the cash FX market went to
> EBS [Electronic Borker System]:
>
> Your first inclination is to hit the bid, because there are what appear to
> be huge offers above the market. But sometimes, what seems apparent, ain't
> necessarily so. Prices get manipulated and any market maker that's worth
> their weight in salt will soon learn how to get long at the bottom by
> manipulating the quotes. Were you watching a market maker's Globex screen?
> Or a vendor's squawk box or the CME's free quotes?
>
> When I had large orders to buy US dollars against either the yen or the
> dmks in the cash markets, the first thing I would do was go out and
> 'noisily' sell $100 million US. Then the fun begins...Once people "know"
> you are selling or have an interest to sell, it's very easy to get 10
times
> that amount in cheap dollars before everyone wakes up. It works the same
> way in this situation. Someone was a quality buyer and you only saw what
> they wanted you to see.
>
> I'd also suggest that we hit very important price levels on the downside
> today. As I said on my web site this afternoon, IF price is to remain in
an
> uptrend, it needs to find support at 1224 in the S&Ps and 1825 in the
> Nasdaqs. There are open unfilled gaps below the 1211 level in the S&Ps and
> 1751 in the Nasdaqs...once one of those collapse, we may be right back at
> new lows quickly. Maybe someone had a vested interest in buying at 1224?
>
> Best,
>
> Tim Morge
> www.medianline.com
>
>
> >----- Original Message -----
> >From: "John Clemens" <jbclem@xxxxxxxxxxxxx>
> >To: <omega-list@xxxxxxxxxx>
> >Sent: Monday, April 23, 2001 2:30 PM
> >Subject: Bid and Ask Size at a bottom?
> >
> >
> > > At 12:09 PST, the ES1M was retesting a local bottom tested 3 times
about
> >40
> > > minutes previously. I was watching the bid and ask size closely(1st
time
> > > I'd done this) and saw this interesting situation: the bid and ask
prices
> > > stayed at 1224.00 for a good part of a 5 minute period, the bid price
> > > especially did not budge from 1224.00. At the same time the ask size,
> >which
> > > usually jumps around between 1 and 50-100, stayed in the 400 range
for
> >the
> > > entire period. The bid size was in its low range, 1 to 50-100(don't
hold
> >me
> > > to these numbers but they are faily accurate). I'm using BMI
satellite
> >for
> > > data.
> > >
> > > Logically, with such a large number of sellers for such a period, I
was
> > > expecting to see the bid price dip below the 1224.00 level as someone
> >tried
> > > to entice a lower price, but it didn't happen. 1224.00 was written in
> >stone
> > > and after the 4-5 minutes the market moved up a bit and then came down
and
> > > tested 1224.00 again.
> > >
> > > Would someone like to comment on this? Is the bid and ask size
> >unreliable,
> > > or am I misunderstanding this situation.
> > >
> > >
> > > John
> > >
> > >
> > >
> > >
>
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