“Stocks don’t just move, they are moved” — Jeff Cooper
You notice in the prints a held bid and it’s not dropping, so you decide to get in front and get long. There you arenicely positioned in front of the held bid just waiting for the move up. You’re reading the tape and you spotted this held bid but it’s not going up! What could be happening? The buyer is there I can clearly see him on the tape. There is some action on the offer it keeps getting taken but it never gets very far. The bid doesn’t keep moving up. You ask me… I say “know the tape”. You tell me all about the held bid you see on the tape. Again I say “know the tape”. I then ask you, what’s the market doing? You tell me the SPY is red and grinding lower. I tell you find another play you’re a day trader and movement is a prerequisite for profit. If it’s not moving or having a high probability of moving it’s a waste of time.

Yeah that held bid you found looks so good. Yes it does, it stands out, but in a down tape just notice it, make a note of it, set an alert and move on. Why? Because stocks are moved they don’t just move. In a down tape that buyer holding the bid doesn’t have any great incentive to pay up. As long as he is getting enough supply to fill his order why should he pay up. Most likely he will just drop that held bid that everyone who jumped in front is using as a backstop and get them to sell him the shares they stepped in front for. If you were the big buyer you would do the same. Unless something happens to change the condition of the down tape and force him to have to pay up to get order filled you are just wasting time, energy, and money. Remember stocks are moved they don’t just move, if the mover doesn’t have to move you need to move on and find another ride.

Jeff Davis