Hi Maarten Z; On AMZN today watching Level 2, did you see FBCO get what I supposed was a big buy order? I clued in, when in a minor decline, he just stood there and absorbed shares.
Sometimes I think this sort of trading is like the child's game of "keep away". In this, you get your hands on something that someone else wants, (or owns, even) and see how long you can prevent them from getting possession of it. They chase after you, but sometimes appear to give up and pretend to be no longer interested in it. Then, since you really don't want the thing, you have to get rid of it (i.e. give it to them cheap) or instead wait for them to show interest in it again. Children can be so cruel...
FBCO took so many shares so quickly that when he chased the stock up a little, I knew he had to fill a big order, and was likely to chase the price up a lot more.
When the guy chasing the stock lets the price get well above his bid, it is sometimes a useful thing to do to preference him on Selectnet with an offer closer to the ask than the. If he takes your shares, you know he's still buying, and is likely to eventually push the bid, up past the current level. Sometimes he will take your shares even though he isn't showing anywhere near the inside bid. In this case, pick up more shares near the bid, and play "keep away".
-- Carl |
