----- Original Message -----
Sent: Wednesday, June 29, 2005 11:55
PM
Subject: Re: [RT] Bid/Ask sizes
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 -----
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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