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Technology Stocks : Net Perceptions, Inc. (NETP) -- Ignore unavailable to you. Want to Upgrade?

To: GoBulls who wrote (488)	5/11/1999 7:35:00 PM
From: Fred Mussler	Respond to of 2908

Level 2 shows all the bid and ask from the various mm- island etc. You see their asks move up (or down ) to match bids or visa versa depending on whether buyers or sellers are in a stronger position. Bids and asks can BOTH be theirs- island, nite - or any of the other mms are on both sides- they raise their ask as buyers step in. (their buyers)-so they sell and make the spread - which can be hugh. When there are only sellers (100 here - 100 there ) they drop the bid a little each time and people see the trades and get scared out. Tomorrow they'll sell the shares higher (if its a good stock like this) My guess is they want to balance so at the end of the day they'll sell at higher asks (by creating excitement by raising prices - their OWN bids (selling stock they got low earlier in the day) to their own raised ASK- a little toward the end of the day]. Their are usually four or five active mm in each stock- keeps it semi kosha. Or they lower the asks and at least get out of a stock that is not performing (new volume) too well.To do business they have to be a little higher on the bid side then other mm or a little lower on the ask. Even numbers draw a lot of volume ie 29 with LPGL- you can see that on Level 2 and offer at 28 15/16 and get a sale- THATS A BIG ADVANTAGE (cometimes) Thats why even a little demand from institutions helps a lot- of course a lot of new customers is even better. Also posted on YAHOO LPGL. Tradescape.com has free limited Level2 so you can see comething of whats going on. Its worth getting in my opinion for even one or two trades a month in volatile stocks.We want to be selling INTO the volume when a stock is moving up (if possible). You can also see a lot with Level 1 time/sales- least it shows volume- just not who it is. More advanced Level 2 study allows pros to follow mm- they have habits too- and take advantage- some handle lot of shorts etc. Good trading Fred Fred