Durect (DRRX)

[realfast95]

another helpful indicator I found with DRRX.
If you have access to Level2 from your broker.

GSCO (goldman sachs) has been showing a large block on both sides, bid and ask. This acts IMO, as a risk/reward indicator. For example, on Friday they were set around 1.51 and 1.63 with all the other market makers (MM's) in between, only showing small share quantities.

I don't see this from other stocks I follow. I did years ago with a small solar stock and a different MM, and I traded quite well.

With this in place, our risk was 9 cents to the downside and the upside 3 cents. They do move the location as the oscillator effect of the other MM's trade shares. Once in a while another MM will show a large block, and we see it get absorbed.

So the net result is a way to view the the intra-day action. If the trade price is getting close to the stop GSCO put in place, it gives you a sense that it's a good price to buy. This seems to occur a lot in the early morning. Likewise, if the price is close to the top of the range, you might feel some pain on your purchase. But good on a sale.

Of coarse this past Friday was tricky as an example. The market was subdued with the jobs report but took off later.

Another way to view it is if your a day trader. Knowing the range, you can get in and out depending on how close it is to the GSCO stop/resistance.