Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: rocklobster who wrote (27709)	1/15/2002 5:04:57 PM
From: TREND1	Read Replies (1) \| Respond to of 52237

come on rock Are you saying that "someone" should be there waiting to take your loss instead of you(g). It's a market of supply and demand. I recall a specialist on the NYSE going under during the 1987 fall because he was left holding the bag on the wrong side. But without a specialist it is a market of pure supply and demand. QUESTION IS !!!! What are you going to do the next time ? Larry Dudash

To: rocklobster who wrote (27709)	1/15/2002 5:09:44 PM
From: Michael Watkins	Read Replies (2) \| Respond to of 52237

rok, a system that allows for 40 points of slippage on a contract as liquid as the nq's is obviously not working very well in my opinion It isn't vapor. And price is liquid where price is trading, not way above. Have you looked at the time and sales? There are hundreds of data points there. Those are trades from real live people, and maybe a computer or three as well. Here, as simple as I can put it, an analogy: You are at an apple auction. Five sellers are there. Fred has 1 apple for sale at 10$ Mary has 4 for sale at 13$ George has 30 for sale at 20$ Tim has 100 apples for sale at 22$ June just sold her last apple for 9$ When Hank shows up and needs 50 apples or he will be fired, what is his average price going to be? (I'm not doing the math). Just then, Helga shows up with an order for 100 more. Whats her price going to be? Closer to 9 or closer to 22? 22, of course. In futures there is no 'market maker' or 'specialist' to somehow govern or control prices. Its all instantaneous supply and demand. Neither the CME nor IB's computers can infer what market participants wishes are - they act upon the orders that are given to them. And in this case, someone came in and started buying all the apples in sight. The person in line behind them did the same. The person in line behind them paniced and bought even more. And so on. A couple minutes later Helga and Heraldo own the entire apple crop and are feeling a little silly, and start selling them off and prices return to normal.