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 : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Brad Bolen who wrote (23625)	8/7/1998 4:34:00 PM
From: Follies	Respond to of 94695

The NY is another story. Actually, it seems ironic, but I would rather see big trades below the bid rather than above the ask for the short term (if I am long). I know this seems contrary, but it works. The reason this happens (both on NYSE and NASDAQ) is this. A fund manager may decide to buy 100,000 MSFT. He will call a MM say goldman Sachs and put the order in in the morning. The MM will then start buying during the day and picking off any sell orders. Near the end of the day the MM will decide the price to charge the fund manager (often the weighted average price of the day). This price may now be below the bid since the MM and others have already moved the market up. The price is printed below the bid late in the day for an order placed in the morning.