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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Lino who wrote (904)	4/6/1998 11:08:00 PM
From: ojai	Read Replies (1) \| Respond to of 2120

Lino- Thanks for the response. I was watching VTSS at the close today, the MM with the most #at bid would move up to the best bid, buy a bit, drop down 3 to 4 levels, then the price seemed to have downward pressure, other mm's following suit. The MM was also on the ask, but seemed to stay a few levels away from best ask, even when the ask moved in it's direction. So I am assuming that because it was generating a buy at bid, then moving away, it was indicating downward pressure. I was curious to see also that there was 3 50k blocks during the day at 2 points above where it ended up at the close. It seemed odd that those blocks went out near the high of the day,(maybe it was not odd at all, MM profit taking?). The more I learn, the more questions I seem to have. -ojai

To: Lino who wrote (904)	4/7/1998 11:19:00 AM
From: William W. Dwyer, Jr.	Read Replies (1) \| Respond to of 2120

Ken, You mentioned watching the spreads. Please elaborate on that,if you will. Do you mean that tightning of a spread might often suggest impending upward movement, downward, or what? Thanks, WD

To: Lino who wrote (904)	4/7/1998 9:15:00 PM
From: William W. Dwyer, Jr.	Respond to of 2120

Lino, I am so sorry for the bit of confusion. When I wrote my first message to you, I thought I was replying to something Ken had written, specifically the remark you made "When you see large MM firms like GSCO or MSCO etc. controlling the inside market, watch the price spreads, that will give you some idea of where the stock may be going." I meant to ask Ken what he meant by "where" the stock may be going, up,or down, or what. I thought he (or you) was trying to say that an increase or decrease in the spread might signal an impending movement up or down in the stock. I was hoping to get clarification from you on this point, and I would even appreciate a comment from Ken if he reads this post soon. By the way, I think this is a very good thread, and I also like Ken's stock chat-room very much. One of the very best I have seen in a long time. Thank you (all) for your patience with me on this post. WD