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

To: Matthew L. Jones who wrote (4121)	9/16/1999 9:48:00 PM
From: marketbrief.com	Read Replies (1) \| Respond to of 18137

hi Matt, I'm not Rick but I think you were addressing me... I am not saying one should fade the ISLD book, but I find it interesting that when the bids get sparse and spacey on ISLD, the stock isn't necessarily weak; indeed, I find that a thinly bid book is very common in a strengthening stock. Likewise, if a stock is very weak I don't often see well offered levels above on ISLD, again the offers are thin and far between. If I'm short, I am a LOT more comfortable seeing a thinly offered ISLD book... it's counter-intuitive I know, but I swear it works. (It's also fun to watch the difference between the orders placed by direct access players and Datek customers who don't have the same cancellation speed.) ~Smart$

To: Matthew L. Jones who wrote (4121)	9/16/1999 10:00:00 PM
From: Rick Faurot	Respond to of 18137

Matt, I'll respond since you mention my name. I think maybe marketbrief is saying he would fade the ISLD book, tho I don't understand his theory. I do not fade trends myself. My pockets aren't that deep <<gg>>..I like to just catch onto a trend if only I can find one (not easy of late) and ride it for awhile. Regarding "true depth" the waters of L2 are deep, that is for sure. Not only do MMs not have to show true size, but they are increasingly prone to using multiple ECNs both for "discreet" trades, ie, not showing to the market that they are working a certain stock, and even more, for influencing stock action by posting huge size often outside the inside bid/ask. Figuring out what is going on is, in my opinion, something of an art. If you want to master the L2 scene, I recommend following a couple of stocks closely on L2 all day every day. I keep regular notes in my trading log as to who is running the stock ( the "ax"), who his buddies are, what kind of games they play, how often they go through ECNs, which ECNs they use, etc. If you do enough study you will get the hang of reading the action. best regards, Rick