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.

Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis V. who wrote (9115)	3/11/1999 4:16:00 PM
From: Robert Cohen	Read Replies (2) \| Respond to of 27311

I look at it this way. The bid signifies traders that say "I have cash and wish to buy". The ask conversely says "I have shares and wish to sell". Pretty simplistic but works for me. As the bid size increases it usually forecasts up side momentum. Robert

To: Dennis V. who wrote (9115)	3/11/1999 4:34:00 PM
From: P. Ramamoorthy	Read Replies (1) \| Respond to of 27311

* off topic * Dennis - Interesting observation! You know that Market makers, especially NASDAQ, are free to raise or lower price or keep large BID/ASK spreads, for other reasons. What I stated in my last post was my understanding of how it should work, assuming the market maker is doing his/her duty to match demand and supply of shares by adjusting the price. A market order to buy is at the ASK price, the order goes to the ASK volume. A limit order is different. A limit order to buy VLNC at specific price, goes on the ASK side volume, not the BID volume. Limit orders to sell VLNC at $7, go on the BID side. Confusing? By looking at BID/ASK volume in the quote, we can not tell the percentage of limit orders, etc. I edited my last post, about the ASK volume for matching the BID volume. You may want to confirm your observations on other stocks in NASDAQ, say NOVL (high momentum this week) or another stock with low volume similar to VLNC, also on NYSE which is more reliable. Ram

To: Dennis V. who wrote (9115)	3/11/1999 4:40:00 PM
From: John Curtis	Read Replies (1) \| Respond to of 27311

Dennis: Your statement regarding bid/ask size is similar to my layman's interpretation. That is, those two size indicators are a gauge of demand. Once the bid size starts to routinely exceed ask size this says to me that we've reached a relative support level(ie. the buyers are more than happy to step up and start offering to purchase) while those folks willing to sell have become, by comparison, small. Soooooo, using the commentary provided by Ram as an example, if the bid size was 120(120,000) shares, while the ask size was 10(1000)....wellll.....supply and demand theory kicks in, no? Of course this thinking does nothing to account for MM shenanigans, but that be something else again. Now let's see how tomorrow goes with VLNC. I don't think, given recent days volume, that much is happening right now although it's struggling to stay at its trend line of ~$7. But even so I ain't concerned about the way it's behaving because in light of little news it's actually doing rather well for a speculative issue. I'm using any/all dips into the $6's as an opportunity to add more. As for my SEC "harangue," well, ya gotta go with hard data and project out based on that. Besides, a potential wait of an additional 3 months after all this time ain't bad(once I reign in my impatience). Hey Mark, I notice you said nothing about the end of 1st qtr of their fiscal year 2000 SEC commentary. Should we imply from the lack of a statement from you regarding this weee tidbit that you are conceding the potential efficacy of VLNC at this point? Heh! John~