SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ellen who wrote (30958)11/21/1999 12:33:00 AM
From: Marshall001  Read Replies (2) of 108040
 
Ellen,, Here is a little L2 info. I am also learning the ropes myself but this is a wonderful example of the point being made.

Thursday 3 quality IPO's came to market, One of which was MSLV. I watched it all day on L2. I actually didn't buy any at first because I thought it should have opened much higher. Got scared off by the low open and drop.

Twice between 3 and 3:30 the MM's dropped it from 46 1/2 to 44 1/2 very quickly. What they did IMO was use the profit taking by daytraders around that time as an opportunity to remove orders on the bid and stack orders on the ask. This induces some panic to weaker hands and they all try to get out before they lose all thier profits. What happens is traders see the orders stack up on the ask and panic.. This creates more selling than buying. Therefore the big sell orders( placed by MM's) never get filled as the bid fades away and the orders pile onto the ask..

While this happens, as the price falls the MM's are buying the shares from the panic sellers at lower levels. This goes on until enough buyers step in to level the order flow again. Then the MM's remove the sell orders that never got filled and create an imbalance on the bid side. This drives up the price to a point where the MM's sell off the shares at much higher prices..

I used the sudden drop on Thursday to pick up shares at 3:30 for 44 1/2.. Then drove to a friend's house.. He had sold his MSLV at about the same time I had bought (he got shaken out).. By the time I got there I was up 10 pts..

Now, I may be way off base with this thinking but it seems like a great example of MM's trying to shake out some shares for themselves.

Hope this helps.. If anyone has anything to add, Please do.. I am interested in learning more about interpreting L2.

Thanks,

M
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News