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

To: Paul Viapiano who wrote (992)	6/18/1999 2:40:00 PM
From: -	Respond to of 18137

<re: ISLD and ARCA dominating the Level 2 action> Usually just means the stock is in "motion"... "dominated" by ECNs is often the wrong word to use to describe that activity - the bigger orders from MM often dominate the movement, then the ECNs swarm in to flip shares. There has to be 'real' buying ("beef behind the bid" [or offer]) to move a stock up [or down] very much (depending on the stock)... and we daytraders sometimes jump in front of that motion, making the LII action very busy... but not necessarily dominating it. So when you see momentum (e.g. a stock moving up), often you'll see a swarm of ISLD and ARCA orders bidding for the stock on small pullbacks, then offering it out on the offer as it moves back up... they're playing the underlying momentum, caused by large orders being worked by the MM's. Probably an over-simplification, but that's the root of the most frenetic ECN activity. -Steve