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Pastimes : Ask Mohan about the Market

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To: Cynic 2005 who wrote (17758)4/22/1999 12:00:00 PM
From: Mark Ivan  Read Replies (1) of 18056
 
>>Mark, I missed 66 level to short RMBS

That's what limit orders are for! (ggg)

Really, I have a question. Do you (can you) use the bid size and ask size to determine anything about the near term stock direction. I assume the bid size is the amount of shares (in hundreds) the MM is willing to buy at that price, and the ask size is the amount they have to offer at that price. Is that correct??

Can you use this info; like if the ask size is HUGE and the bid size is low, that the MM have a lot of stock for sell and aren't willing to buy much (thus if sellers come in, the price moves down quickly). Does ask size and bid size give an indication of the depth of the market in that stock? (ie, where retail investors limit and stop orders are sitting?)

TIA

Mark
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