Large size on the bid/ask in ZB

J

jfut

Hi there,

Over the last couple of days I have noticed relatively large ask size at a select few price levels in the 30 year bond futures market, as the market slowly grinds upward. An example of this occurred today at 6:29 a.m. Eastern Time.

What do you think is the reason for the large size? To induce traders to buy because of the number of resting sell orders at the price level/area? Or the opposite perhaps? i.e. because of the large ask size, traders may sell around this area thinking that other traders are trying to short? What are the market makers up to, assuming they're conducting their operations here? Is a clue being given, based on the size, as to the overall market direction on an intraday basis?

I've noticed in the past that once the large ask size is pulled, the market rallies, suggesting that this was some sort of trap maybe...

Your comments on this subject would be appreciated. JPEG attached.

Thanks,

JFUT
 
It means nothing and is a waste of time trying to figure out what it means. What does matter is:

Are they going through it when traders hit it?

Does it move to the next level once the contracts are gone?


Just remember that as a trader the last thing you need to do is analyze what someones intentions are. A company could just announce that they are going to double their profit and if someone decides to hit a LARGE Sell button then that stock will fall. It's all a matter of perception and how things react to other events and trades.

If you see a large offer and they go through it then you know there are buyers looking for liquidity and vice verse.
 
Quote from Satan's Helper:

It means nothing and is a waste of time trying to figure out what it means. What does matter is:

Are they going through it when traders hit it?

Does it move to the next level once the contracts are gone?


Just remember that as a trader the last thing you need to do is analyze what someones intentions are. A company could just announce that they are going to double their profit and if someone decides to hit a LARGE Sell button then that stock will fall. It's all a matter of perception and how things react to other events and trades.

If you see a large offer and they go through it then you know there are buyers looking for liquidity and vice verse.
More...

Hey thank you for the pointers. Appreciate your help.
 
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