Quote Driven Market

He said. Then she said. They're both nervous. Maybe backs of fingers are touching. And then one of them blurts out, "$23." Even though the stock was trading at $15.

One broker is quoting a price-at-volume of some huge up-price print. Just the rumor of that stock suddenly getting hot, with so much money sitting on the sidelines, is enough to make a horny, jittery market jump and react quickly, bidding up the $15-a-share stock fast to $23, or at least heading quickly in that direction.

That's a quote driven market. The brokers own the samosas of the buy side investors, who are nervous to be sitting out a big bull market, and who are anxious to jump early onto the next MegaTrend.