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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?


To: David Howe who wrote (10078)3/1/1999 2:49:00 PM
From: AreWeThereYet  Read Replies (1) | Respond to of 14266
 
About bid and ask, may I add my 2 cents here?

As far as I understand. Unless we have level II+ access, the bid x ask ratio we see is only the top level. So it didn't tell the whole picture. Even if we have 100 x 1 bid to ask, there may be tons of big ask blocks following the 100x1. So when the 100 bid block is filled the situation may be reversed.

Usually bigger bid mean higher demand for the stock, thus a bullish signal but if the price is falling, higher bid may not be any good at all because the MM is bidding the price down! Altogether, I don't think we need to pay too much attention on the bid to ask ratio unless you have level II quotes. The ratio is very dynamic and can change in seconds.

aC