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To: Colin Cody who wrote (3234)1/3/1998 11:15:00 AM
From: James Harold Alton  Read Replies (1) | Respond to of 4489
 
Colin, Thanks for your input on this, I will as you suggest take a closer look at the volume movements during the times I mentioned in my previous post.

I was trying to figure out what scenarios could cause the bid/ask spread to become extremely tight and was wondering if you thought a situation where the MM's have some inventory to move at a certain price and are sitting on the ask, while some steady buying pressure lends support to the bid making it stable? Your other explanation of why the bid ask spread tightens makes sense to me.

James