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Broker upgrades and downgrades
- Thread starter jj_jere@hotmail
- Start date
I use to play an opening strategy that I called "They're Lying".
It was based on the proposition that brokers do a big hype of stocks that they need to get out of or that their clients need to get out of. This is particularly true of stocks that have been slipping down.
When a stock gets positive recommendations from brokers/analysts that people listen to and they come out before the opening, I'd short on the opening. If it went my way, I'd stick with it until it stopped acting right. If it didn't, I'd get out ASAP. You also have the specialist on your side with this strategy if he's forced to get short on the open due to buy imbalances. He doesn't want to be stuck short either.
Worked OK when there was more hype. Hadn't done it in a while.
It was based on the proposition that brokers do a big hype of stocks that they need to get out of or that their clients need to get out of. This is particularly true of stocks that have been slipping down.
When a stock gets positive recommendations from brokers/analysts that people listen to and they come out before the opening, I'd short on the opening. If it went my way, I'd stick with it until it stopped acting right. If it didn't, I'd get out ASAP. You also have the specialist on your side with this strategy if he's forced to get short on the open due to buy imbalances. He doesn't want to be stuck short either.
Worked OK when there was more hype. Hadn't done it in a while.
Heard some joker broker guy on TV night before last telling people they should invest in pharma's and genetics. He was talking pseudo-science and almost tripping over himself to make his point, something about 40-100% within the next 10 months. I follow a few of these and lo-and-behold they tanked today while tech skyrocketed. If someone would have given him an honest pill before the interview he probably would have said "we want to unload our pharmas so we can buy techs because they're on the verge of taking off".
JJ, not sure if you are still looking at playing broker upgrades or downgrades. If so, I get two daily reports from Goldman Sachs via Charles Schwab. The reports list upgrades, downgrades, earnings revisions, etc. I assume they send them since I am a client, but you may want to check the site and see if you can get them sent without an account.
If you can't get them, and are still interested in this, shoot me an email and I will forward a few days morning/evening reports your way. This would let you see if you can do anything with them.
Regards,
If you can't get them, and are still interested in this, shoot me an email and I will forward a few days morning/evening reports your way. This would let you see if you can do anything with them.
Regards,
Are they a timing report? What I mean is asap you receiving the report, check if the stock has already made the movement.
Otherwise this link is just as good:
http://www.briefing.com/freeservices/fs_updown.htm
Otherwise this link is just as good:
http://www.briefing.com/freeservices/fs_updown.htm
Not really, I get the morning report about 9:20am and an evening report by about 5. Personally I don't do much with it other than a quick read of upgrades and downgrades.
Two recent examples, ARBA was upgraded yesterday, the move had taken place by about 8:30. Depending on your strategy you could have faded the move or taken the position overnight and both would have been profitable.
THC was upgraded last week, it opened down, however it did move back from about 60-63 during the week.
This is not my game, as I wonder if the person upgrading/downgrading doesn't just have some stock to move. But JJ had asked, and maybe the report would be workable for him.
Regards,
Two recent examples, ARBA was upgraded yesterday, the move had taken place by about 8:30. Depending on your strategy you could have faded the move or taken the position overnight and both would have been profitable.
THC was upgraded last week, it opened down, however it did move back from about 60-63 during the week.
This is not my game, as I wonder if the person upgrading/downgrading doesn't just have some stock to move. But JJ had asked, and maybe the report would be workable for him.
Regards,