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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (3645)	4/22/1998 7:59:00 PM
From: Sal D	Read Replies (1) \| Respond to of 29382

DD, I cant say I understand the whole bid ask thing either, I have a note on my board that says, Bid size larger than ask good Bid size lower than ask bad But I do know one thing CADE is good Joe

To: Ditchdigger who wrote (3645)	4/22/1998 10:41:00 PM
From: Woody	Respond to of 29382

Ditchdigger : your post is "in the money" IMHO. I'm new at this so I have become a student of the trade, sort of. What I have learned simply put is: MMs job is to make a market - in effect MAKE buyers and sellers If no buyers - they drop the ask price If no sellers - they drop the bid price Bid - Ask size is IMHO, only the cards showing on the table Sometimes MMs show a large bid to encourage buying Sometimes MMs show a large ask to encourage selling If you see a large bid and no buyers at or near the ask - good chance MM will first drop the ask - looking for buyers - and then drop the bid looking for sellers. With a large ask it's reversed And stocks with high average volume differ from low volume stocks. In short, the best indicators IMHO, are the trades themselves. If enough trades are at the ask, the price goes up.If at the bid, price should drop cause MMs don't want to over pay -just like us. P.S. I've been digging ditches for 25 years in Fla with everything from a shovel to a CAT 225 track hoe. Tried for your name - but alas it was gone. Best of Luck, Woody