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Re: [RT] Bid/Ask sizes

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There is a adage that has been around for years.  "Price moves to size. "  Why?  Because that is the only place that the big boys can do business.  No one is trying to lull anyone into anything.   Money really doesn't move markets.  Soros lost over a billion dollars on the British Pound, do any of you have a billion or two to try and impact the market.  Governments can't change the direction of markets for more then a day or two and neither can an upstairs trader or brokerage firm. 
 
Forget the conspiracy theory concerning the markets and trade what you see on the charts.  That is what tells you where the money is going and not the bid and offer.  It is the guy that actually does the trade that counts, not the wanna be that has a bid or offer away from the market.  When someone buys or sells that shows up on your charts and that tells what money is talking.
----- Original Message -----
Sent: Wednesday, June 29, 2005 5:38 PM
Subject: Re: [RT] Bid/Ask sizes

I'm no pro, but here's my take on this.
 
Watch those ES bids carefully. When the best bid gets to around 2500 or 3000+ it's more often than not someone spoofing. It seems that they're trying to lull people into joining the bid and a few seconds later they pull the rug out, cancel the bids and sell into whatever suckers remain. And, yes, they probably are only looking for a few ticks profit. If you watch the T&S, including the B/A on something like eSignal, you'll see a flurry of activity all within a millisecond as the large bids vanish and the sell orders come in. It's way too fast for anyone with an Internet connection, so I'm assuming it's the commercials and upstairs traders with a direct connection to Globex and huge computers with nanosecond reaction times
 
I vaguely considered a system whereby I sold at the bid whenever I saw this happening and for a while earlier this year it looked promising, but I'm not into scalping a few ticks here and there, so I let it pass. However, I'm acutely aware whenever my stop rests at one of these overly large bids that I'm likely to incur slippage as the bottom drops out of the bids.
 
Just my own experiences.
 
Andrew
 
 
----- Original Message -----
From: dom1_1998
Sent: Wednesday, June 29, 2005 3:45 PM
Subject: [RT] Bid/Ask sizes

Maybe some of you pro's out there could help me with this.

I'm watching the tape,(IB's booktrader)of the ES mini.  I notice how
common it is for the bid size to be 5x or more than the ask size.  I'm
able to see 5 or more levels up and down from the present price. 

My thought is who ever is entering bid sizes surely can't be thinking
of making only 1 tick.  The risk/reward ratio would be terrible.
They must be thinking in points.  If they believed the ES would move
up enough for a decent profit and put their money on the line, why
wouldn't they pay one tick more and be on board?

TIA,

dom









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