Hello Steve!
First, do you think it is better to see blocks that are worked over time than blocks that are crossed? At least the block that was worked over time can impact the source and demand of the stock since the stock is coming from what is being transacted on the open market, particularly if enough of these blocks are traded. I think you implied this by saying the print of one block, even a large block that has been worked this way, does not make a difference unless additional blocks start to show up. Now if a series of very large blocks that have likely been crossed show up, other than the demand through speculative activity that this may generate, this type of transaction will have no effect on the open market trading of the stock, right? For that matter, it may have been a trade negotiated between the buyer and seller that suited their particular purposes.
What are the differences in tape action do you see between NASDAQ and the listed exchanges like NYSE? Since there is no MM, this must make for some differences. First off, the specialist probably stays out of most activity on a liquid stock. The prints are likely between the buyer and seller. This also means that half the recorded volume transacts for the same shares traded. Further, since there are no specialists that work large block trades for their customers, the management of large block trades shows up differently on a NYSE tape, right? Also attempting to note the shares accumulated through part of a trading day by the specialist is not only meaningless but also not possible to follow in this scenario since it would be difficult to distinguish from the regular seller to buyer activity that is printed on the tape. Correct? For the above reasons and more, there are differences in printed activity on the tape and its significance between the NASDAQ and NYSE. What are some of those differences that you personally have noted? I tend to watch NASDAQ allot more than listed exchange stocks.
Thank you, Steve!
Bob Graham |
