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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.
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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
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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