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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (517)	6/11/1999 9:03:00 PM
From: -	Read Replies (1) \| Respond to of 18137

<they hit me below the bid> Enjoy, it was probably someone using the ARCA ECN with a market order (without a limit price)... or an ISLD trader who doesn't understand the inside-market concepts yet (it can be confusing for a few months...) Getting hit "through the bid" helps in picking the bottom, huh? -I've occasionally had the same thing happen in a strong runner, offering it out above the offer (on ARCA). Yes, I like it! - Steve

To: KM who wrote (517)	6/11/1999 9:16:00 PM
From: Eric P	Respond to of 18137

I had something kind of odd happen. I was bottom fishing in EBAY, had a bid in at 163.5, the quote was 164 x 164 1/16 and someone hit me. How did that happen do you suppose? Someone's market order to sell? I will assume you posted an ISLD order. Several possibilities come to mind. In the order of likelihood: 1) The market was trending lower and someone wanted to exit their long position badly. They were afraid that the market makers wouldn't fill their order at the going price in the down market. They were willing to give up 0.5 points to get a certain exit from their losing position. So they placed an ISLD sell order 0.5 points (or more) below the bid and you were the lucky dog with the highest bid price on the ISLD book for the stock and got the great fill. 2) The market actually was trading lower than that, but you data feed was delayed. Major problems with PC Quote this morning near the open. 3) Someone wanted to be nice. ;-) -Eric

To: KM who wrote (517)	6/12/1999 11:16:00 PM
From: Mark Davis	Read Replies (1) \| Respond to of 18137

The responses to your buy under the bid post are accurate. I'll add the following. If you watch Level 2 on some of these FAST stocks, you will see this all the time. There is a tremendous amount of volume in these stocks, and the paltry size available at any one level is meaningless. Since so many daytraders with itchy, nervous, scared fingers are banging away at these, the slightest move in any direction can cause a stampede. It may only last 30 seconds, but if there is 5000 to go and only 200 at the inside, buy or sell, you can be sure there will be trading below or above the nominal inside market. If you have the testosterone to play this game, and you have a good opinion to go with it, this can be a source of additional profit. Rough game though, and you'd better have a reliable broker.