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 : Level II Trading -- Ignore unavailable to you. Want to Upgrade?

To: Jay Morrison who wrote (146)	2/9/1998 10:30:00 PM
From: Jay Morrison	Read Replies (1) \| Respond to of 1086

Here is an example. The stock is Oracle (ORCL) Larry Ellison announces in the middle of the day at some tech conference that revenue is growing at around a 25% rate. Good news for the stock because people thought previously that Oracle was going stagnant. The stock begins to move up. The SOES traders spot the heavy buying early in the under market and the buying at the ask. The SOES trader starts buying at the ask to ride this trend. The market maker is pissed because he is getting hit when he would rather have a bit more time to raise his ask. THAT is the key reason why market makers hate SOES traders. They (SOES) are taking away part of his (market makers) money when they do this. Before SOES was around and so common, the market makers could all re-adjust their prices faster than the common trader could get in. The market makers are losing money in volatile markets because the day traders are getting a piece of the move. Jay

To: Jay Morrison who wrote (146)	2/10/1998 4:23:00 PM
From: ExCane	Respond to of 1086

Jay- Regarding "intelligence", That was the wrong word, what I meant was cleverness (if it's a word). Say AOL raises it's prices, it helps a trader to think, "hey that would benefit smaller ISP's such as ELNK and MSPG" then look for trades. I didn't think of this , however, but it's a current example. I believe studying your stocks as much as you can points you to trading opportunities in the future. Maybe this is for another thread, though, as it has nothing to do w/level2. Good luck. -Alex