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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Kimberly Lee who wrote (3776)	5/4/1999 10:38:00 PM
From: Jim B	Read Replies (5) \| Respond to of 108040

a lurker on this thread (fan of yours kimberly) has asked me some questions about learning to use Level 2... I thought I might post it here for all to see... she also asked for my end of day thoughts on ACCR and Kimberly's as well since Kimberly didn't say much about ACCR today .. but lol.. I guess the rest of us said plenty. ---------------------------- I'll start with the easy stuff.. ACCR... up or down?? well, my personal opinion is that it will open up.. maybe not up very much though.. MMs were buying shares right at the end.. in fact, I put in an order to sell some shares at 1.25 when it was 1.18 x 1.21 and they took my shares at 1.25!??? (Needed some quick cash to pay a bill.. only sold a little) why would they do that unless they figure on selling the shares for more money tomorrow.. but always remember that heavy buying or selling truly determines where the stock will go.. market buy/sell orders over night usually account for gaps up or down.. Really isn't a good idea to place market orders on penny stocks... some say it's okay if the stock has a HIGH volume and plenty of cash flow. MMs on ACCR were intent on giving support at $1.00 all day so I would assume that if it holds $1.00 tomorrow that this is the new support base... now, I've read on one of the threads that there will likely be some news coming tomorrow for ACCR... but we all know that that is just speculation.. now to your question about "How to Read Level 2".. well Kimberly or someone can probably point you to a website that has all this info... so I'm probably typing for nothing.. but I'll give you some basics.. for example::: you see ACCR right now at PGON NITE MASH (BID) 1.1875 1.25 (ASK) MHMY USCT PGON..... 5.... 1.1875 ............ 1.25.... 5..... MHMY NITE.... 5.... 1.1875 ............. 1.25 .... 5..... USCT MASH.... 5.... 1.1875 ............ 1.30 ..... 5 ..... WDCO LDWD.... 5.... 1.15625 ........... 1.31 .... 5 ..... WIEN The above shows you that the current best bid (price that you/we can sell our stock at) is $1.1875. The current best ask (price that you/we can buy shares at) is $1.25 There are 3 MMs (market makers) showing $1.1875 and 2 MMs holding us under $1.25 on the ask... sometimes called support and resistance, respectively. The "5" (block size) by everyone's name means that they are willing to stand at that price for 500 shares. Once they have bought or sold 500 shares depending on what side (bid or ask) they are on they reserve the right to then change their price. This is why sometimes you only get a partial fill on your order at a certain price. Some people believe that if the block size on the bid side is larger than the block side on the ask.. then that is an indication the price will move higher... I'm not convinced, but some are. Anyway, with ACCR I would look at the above (and I've left out alot of other MMs and prices) I would see that there would have be enough selling to remove 3 MMs off of $1.1875 leaving us at $1.15625 on the bid for a loss of 3cents on the bid. You could also say that enough buying could remove 3 MMs off the ask and take us $1.31 for a gain of 6cents.. twice as good is the reward vs risk. Now what you want to do is look for stocks where the above is greatly exaggerated.. like if 7 MMs were all lined up offering $1.1875 on the bid and 1 or just 2 MMs were at any given price on the ask side. That, to most, is a clear sign that we're seeing the low price for now and that it's time to buy in. The trick of it is that you don't know how much buying/selling it will take for a MM to be satisfied and move off the best price. There might be 7 MMs on the bid, but maybe the 1 MM on the ask is crazy in the head (LOCO) and wants to short 7x as many shares as the MMs on the bid are willing to buy.. in that case the stock won't move up until he's done shorting (or selling if he really has that many shares)... but this is what I look for when trading.. if more MMs gather at a certain point on the ask, when we near that point I sell... when lots of MMs gather on the bid side, I buy with them or as close to their bid price as possible... You just have to remember that MM lineups change very quickly.. sometimes when I post that there is support.. it's gone before I even finish typing my post.. but more times than not, this will work. Everyone has to do what's best for them. The above is just a simple example from a moron who trades so poorly he filed CH7 bankruptcy this year... however, I've had some success for the month of April trading more on the volume/charts/etc.. than holding for the longer term and I have learned that 20% to 30% gains are nothing to sneeze at. Hope this helps.. if anyone has questions, feel free to ask them... someone here who is more savvy than I will help I'm sure... in fact, there may be some experts here who will point out the half dozen flaws in my thinking.. best wishes to all... did anyone actually read down this far??? I'm amazed! jim

To: Kimberly Lee who wrote (3776)	5/4/1999 10:46:00 PM
From: GERBER	Read Replies (1) \| Respond to of 108040

Major Alert to all Delsecur www.delsecur.com (GDER) is really a good stock for May. I heard that news really get out soon. Can be a 20 or 25 baggers because the deal with US gouvernment is hudge..Over 100 M$ Do your own DD Gerber PS: thanks for WLGS and LOCK last week