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To: LLCF who wrote (141479)	1/3/2002 1:49:59 PM
From: GraceZ	Read Replies (1) \| Respond to of 436258

It all depends on who does the block and why... you saw plenty of block orders in the .com's on their way from hundreds to zero and they sped up the move, not slowed it... cause the MM's didn't want to hold them. Of course, if there are blocks being thrown down as market sells in a full scale rout it would take an enormous amount of small orders to keep the stock price from cratering. What we notice in analyzing block flow is that as the stock is being run up by small order buying the blocks are net out while the price is still firm. This is a red light that frequently tells you there is something going on with that company that is about to come down on your head. This was true in CIEN right before they dropped their latest bomb. The block selling wasn't enough to push the price down yet it was enough to make the money flow diverge sharply from price. When the news hit the wires, then the kind of block dumping you are talking about happened and that's when the price really collapsed, but it was also accompanied by small order selling as well.

To: LLCF who wrote (141479)	1/5/2002 3:54:19 AM
From: ahhaha	Read Replies (3) \| Respond to of 436258

"When I say small order pushes price what I'm referring to is the tendency for large amounts of small orders to push price around far more than block orders. While a block order might raise or lower price instantaneously, the price reverts as soon as the order is crossed. Sometimes big blocks are executed with little or no concession in price. While a 100 share order during a low volume lull can change price. I'm sure you've seen this occur." It all depends on who does the block and why... you saw plenty of block orders in the .com's on their way from hundreds to zero and they sped up the move, not slowed it... cause the MM's didn't want to hold them. See in LANL's condensed matter physics: Statistical Properties of Share Volume Traded in Financial Markets by Parameswaran Gopikrishnan et al. arxiv.org ...Further, we investigate the relation between Q/Delta t and the number of transactions N/Delta t in a time interval Delta t, and find that the long-range correlations in Q/Delta t are largely due to those of N/Delta t. Our results are consistent with the interpretation that the large equal-time correlation previously found between Q/Delta t and the absolute value of price change jG/Delta t(j) (related to volatility) are largely due to N/Delta t. What Gopikrishnan is saying above is that what effects price is many little trades more than big trades. The foot soldiers call the tune rather than who does what at size. This is well seen in a study of every trade data. Further, the MMs change the BA when they get persistent small orders which has substantially less total volume than one block that caused no change in BA. Thus one is often better off going market with size in a market with normal flow rather than trying to piece it when flow is up.