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once sp/nd reached limit down move
all trading below the limit down price
is not allowed. you can only bid or
offer above the limit down price.
trades can take place above the
limit down level only for the duration
of limit down determined by the exchange.
if it stays locked limit down means
nobody is willing to bid higher ( buy it )
and nobody is allowed to sell lower ( sell it ).
means some traders will hold their bids and
offers below the limit down move but no
trading can take place.
if buying picks up ( interest ) at limit down
level you'll see some trades above as there
are some takers for the offers and bids can
start rising again and
maybe the market will pick up from there.
if it stays limit down like today, beware...
there are no bids above and no one is
willing to take offers above and market
will likely to fall thru when it's
unlocked. in that case usually panic starts
creeping in, local pull or drop the bids
and offers drop...
bilo.
ps. today the market was weak since
nothing could hold it down, curbs or
nd limit or sp limit... the only one thing
that saved the market from the second
limit down was that time ran out...
it was pretty much known that we will
go limit in the sp today... took a while...
limit in nd is not important anymore since
we get there once a week a least...
----- Original Message -----
From: Keith <Keanjo@xxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Wednesday, December 20, 2000 6:09 PM
Subject: SP lock limit bounce?
> Can someone tell me why the S&p bounces off of a lock limit level
> sometimes without locking while other times it will lock like today.
>
> Keith
>
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