We never know if the ECN is one market maker showing size with reserve or an aggregate of orders of several market participants. Because they all mask themselves behind the ECN, we don't know who is selling what and how much. If we don't know this, we can't establish who the major player is at that time. If we can't do this, we can't identify the ax. This is just one more example of the majority taking a simple observation and forming a wrong conclusion, while the minority understands what is behind the curtain.
Reality is a wonderful thing to trade with.
At time of publication, Schumacher had no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Read our conflicts and disclosure policy . Order reprints of TSC articles. Invest at CSFB direct .