NYSE big bid/ask blocks

Discussion in 'Trading' started by BA_Trader, Mar 4, 2004.

  1. So -- I have my own ideas about how to interpret large bid
    and ask blocks when I am watching an NYSE intraday.
    I was hoping that some of you could contribute some additional

    I call those big blocks sheep herders.

    When you see a big block you have two choices:

    1) front-run it.


    2) assume the specialist is just holding the market at a
    price and ignore it.

    I have seen case 2 unfold in a number of ways... a few examples:

    Sometimes the big block appears and disappears and
    reappears over and over - giving pressure in one direction.

    Sometimes the big block holds the market off -- prices reverse
    and then another appears in the opposite direction.

    Sometimes the big block gets blown out (you see it disappear
    and a similar sized block(s) on T&S)

    Sometimes it appears to get blown out and reappears.

    Sometimes it just goes away.

    I keep a monitor of bid/ask blocks over a certain size which are
    color coded and I've noticed there will typically be a dominant
    color for the day. This color may or may not jibe with the
    prevailing price direction for the day.

    So -- has anyone noticed a tendency or predictive pattern
    with respect to these big blocks? or have a certain philosophy
    on these sheep herders?

    Thanks in advance
  2. That poll should say bid/ask block size.