Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Kailash who wrote (13841)	2/23/1999 4:27:00 PM
From: Mama Bear	Read Replies (2) of 122088

Kailish, my best advice is to pay little attention to bid size. One mm can sit on the bid showing 1000 shares, and support a stock all day. I do think it significant when INCA shows a ridiculous size, like 50k. The only reason for that is to scare people away from that side (hey, it works. If someone is really trying to fill an order for a huge amount, usually they will show 1000, and keep refreshing their bid. Of course this is not a hard and fast rule. If you see ISLD or NITE showing 75300, it's probably legitimate, and a bunch of traders that have limits at the same price. What I look for to judge direction is price and volume. Say a stock is 21 x 21 1/16, up 3. 21 1/16 gets hit, and the ask goes to 21 1/4. If the stock is headed up further, a bid higher than 21 should quickly follow. If the bid goes to 1/16, it's running out of gas. If the bid goes to 3/16, it's showing strength. If the ask gets undercut, it's showing signs of weakness. The faster it happens, the more significant. Another clue to the direction of a move is when the ECN daytraders start hitting offers or bids outside the range. That's usually a good sign of a direction change. Barb

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