Carolyn,
Not a dumb question at all, and a very difficult one to answer. The first point that I must emphasize is that level II shows the present situation only and is of very limited use as a prediction tool. You never know what the MMs are doing; I don't even try most of the time. Level II is essential for daytrading IMO, but more from the standpoint of managing your entries and exits than from identifying a good trade.
BOSCF has been stuck in the very narrow range of 5 3/8 - 5 7/16 for a week now with the same two MMs on the inside bid. There were an overwelhming number of trades at 5 3/8 last week, but RYCE and CNTL bought into the selling and the price held firm. Thanks to Sergio's link I was able to see that those two MMs account for a large % of the trading volume on that stock, so it's wise to watch them. This AM PGON went up to 5 1/2, the first move on this stock in over a week. After buying quite a bit at 5 1/2, he was joined by CNTL, which to me is a good sign. CNTL doesn't want to be left out of the buying, and he's a big player. Unfortunately, when PGON dropped, so did CNTL, so we're back at 5 3/8, but still looking stronger than when the day started.
Probably more than you wanted to know, but that's the basis of my comment about BOSCF.
Esteban |
