DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Dominick who wrote (8460)	5/15/2000 5:07:00 AM
From: E. Davies	Read Replies (1) of 18137

Why is this stock so sensitive that it's bids/offers move by 3/4's or more? Very simply its way too thinly traded for its price. No MM is willing to take the risk of absorbing any significant size at a single price so the prices are nothing more than what the public is willing to bid/offer at that instant. Imagine a buyer comes along who wants to buy 2000 shares. He'll have to eat through 4 or 5 levels (often 1/2 point apart) of 100-500 share offers to get the fill. Then momentum traders see the big move and jump on it a little more. Then the sellers see a quick opportunity to get out and the cycle reverses. Its a very tricky stock that requires careful watching of the tape and L2 outside depth. However it does provide a great opportunity for a lot of quick scalps. Eric

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