Daytrading the BBH

L

LelandC

Just wanted to see if anyone here does or knows of someone who daytrades the BBH (Biotech holders) successfully? I've noticed it has great intraday range but the spread is pretty brutal. Not really sure if it can be traded successfully intraday as I have never tried it. Also wondering if it is exempt from the uptick rule like QQQ?

Leland
 
IMO, there is no real advantage to be able to short on a town tick, nowadays with the decimalized pricing, there are plenty of upticks on the way down. Also, if you are interested in playing bio stuff, HGSI and PDLI are good stuff, especially HGSI, great liquidity.

on the NYSE side I have limited experience, but DNA is on my 'never trade' list. The thing gaps all over the place. Tough tough specialist.
 
Leland Charon,

The spread will kill you on this one. They are only good for swing trading.

BTW, Do you know what Tobias is up to with Instipro? If my memory is correct you used to trade with Tobias, right?

Bill
 
For true daytraders , I would only trade
QQQ, SPY or DIA. HHH's(Internet Holders)
many times have a 1/2 or 3/4 Bid-Ask
spread, a little too wide for daytrading.
All ETF's(Exchange Traded Funds) are exempt
from the Plus tick rule for shorting them.
However, HHH's and some of the more illiquid
ETF's may be hard to borrow . Check with
your desk or clearing firm before entering
a short position in HHH.
Since QQQ, SPY & DIA have a futures contract
for ARB(Arbitrage), they will generally be more
liquid than HHH.


Gene Weissman
Lieber & Weissman Sec., L.L.C.


 
My cousin works at the American Stock Exchange. His boss only trades the BBH and SMH. He makes a big money...BUT it is different being on the floor.
 
True. Don't compare being the "dealer"
and trading upstairs , with no order
flow. My suggestion is to trade "liquid"
ETF's.



Gene Weissman
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net
 
trader58,

Being able to trade the BBH directly on the floor of the AMEX would be a huge advantage I would think. Does this person daytrade or position trade the BBH?
 

The specialist or market maker may daytrade,
arb or postion trade BBH. If he purchases the
BBH in size , he may sell a basket of stocks
that make up the BBH and lock in the difference
(arbitrage). The specialist or market maker may
see the order flow or know a floor broker is
holding a large order. This information can
be important if you are daytrading. Stock
specialists are usually well capitalized and may
be part of a large trading group.
Trading on the floor is not easy by any means.
A specialist must make a market during declining
markets or when there is no buyers or sellers and
can get hurt badly during these times.
Costs can be high for floor traders. A seat lease
on the AMEX can cost over $10,000 per month plus
other fees(to trade on an exchange floor you must
purchase or lease a "seat"-exchange membership).


Gene Weissman
Managing Member
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net


See my site at http://www.electronicdaytrader.com
 
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