Take the Money and Run Message Board

STOCKTALK

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 : Take the Money and Run

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jorj X Mckie who wrote (16078)	8/25/2002 3:36:37 PM
From: SusieQ1065	Read Replies (2) of 17639

from my OI newsletter....Jim Brown trying to drive home the point that the Order Books are empty...just a coincidence that he's using IBM as an example... If you wanted to add some IBM stock to your portfolio (now $80) but you were hoping to buy it on a pull back you could put in a good till cancelled order at $75 or $72 or even $65. That GTC order goes into the market makers order book. If the stock drops to your entry point you get filled and everybody is happy. Most market makers have several million shares of orders in their book everywhere from just under the current price to ridiculous prices $10 to $20 lower. This is how they determine the "depth" of the market. They can tell at a glance how many shares they can buy or sell at a given price. The problem today is the books are blank. Not just lighter than usual but nearly empty. There are always a few orders lingering around but the breadth (amount of stock to buy at a given price like $70) and the depth (amount of stock to buy at any price) has gone to near zero on the buy side. Whether it is fear of the August dip, the post Labor Day drop or the anniversary of the attack, volume buyers have pulled their bids.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next