Don's openings Part 3

Don,

Regarding Citibank.

A few questions...

1) Citibank was a buy? According to the strategy you would be long but I just want to verify.

2) The first print I see is 41.25. Did you get short there?

3) Citibank went to 41.26 and then fell like a stone. It traded underwater the rest of the day so exactly how was that a profitable trade? Inquiring minds want to know :)

Thank you for sharing this thread Don. I do something very similar and though I do not enter on the opening print by and large for people wondering, on balance this is something to definately add to your arsenal.

Regards,

B.E.

PS. I am going to attempt to attach a chart Don. Commentary welcome
 

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Originally posted by Big__Empty
Don,

Regarding Citibank.

A few questions...

1) Citibank was a buy? According to the strategy you would be long but I just want to verify.

Yes, we place buys and sells on every stock...if it opens down, we buy.
2) The first print I see is 41.25. Did you get short there?

No..it opened at 40.75, where I bought it...sold it at 40.95.

3) Citibank went to 41.26 and then fell like a stone. It traded underwater the rest of the day so exactly how was that a profitable trade? Inquiring minds want to know :)

See above...I was out by 9:32

Thank you for sharing this thread Don. I do something very similar and though I do not enter on the opening print by and large for people wondering, on balance this is something to definately add to your arsenal.

Regards,

B.E.

PS. I am going to attempt to attach a chart Don. Commentary welcome
More...

I usually have no problem making "comments" :)
 
my t&s shows first print for nyse is 641,200 shares at 40.75.that is where don should have got a fill.from there it went to 42.20 range.its easy to see that was a sucessful trade.the prints for 41.25-26 were nasd trades 2800 shares.
 
Originally posted by vhehn
my t&s shows first print for nyse is 641,200 shares at 40.75.that is where don should have got a fill.from there it went to 42.20 range.its easy to see that was a sucessful trade.the prints for 41.25-26 were nasd trades 2800 shares.
More...

Thanks, you have also pointed out how it is impossible to trade this strategy on the nasdaq, and you have also shown how far away the pricing can be at times.

Don
 
..for me at least and the way I calculate my prices.

Coming in to the day, I was definitely looking for a bounce from the get go, and was hoping to have a bunch of longs from openings that I could hold for a nice ride. But with the market slated to open down roughly 1.5%, and my envelope at .9% on both sides, most of my sell orders were below the previous day's close. So anything that opened down a little or up at all, I was short on the first print And with the market moving up right away, that's not good.

My first fills were 5 shorts. At first I was a little concerned that I might have had wrong closing prices, but either way, I didn't like the way things were shaping up and I canceled all my unfilled orders and bailed on my positions with losses. If my software supported it, I would have only canceled the sell orders.

I went through all my orders and the charts after the close and I would have had a total of 25 fills- 20 shorts and 5 longs. This is 5 times as many fills as I would normally get. I would have had 14 wins and 11 losses, but most of the winners were small and reversed quickly. With that many positions, I wouldn't have been able to get out of all of them with those profits. The 5 long fills would have all been nice wins.

This is the largest gap down I've seen since I started doing openings. We had a + 1.7% open on May 14 and I did well then, going 5 for 7 with 62 cents of profit. I had 5 longs and 2 shorts on that day.

In hindsight, I should have only put in orders for the long side today, given my upside bias, or adjusted the sell envelope up significantly. Today's open seemed like a blow off low and a great long opportunity. I dropped the ball, but know what to do next time.

Corey
 
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wonder how this will work.seems useless to me since i can already trade these premarket.
 
Did that many of your stocks open up or unch on an uptick? You would not have been filled on all of the ones that opened above your sell level unless they were opening so. On large down openings I just leave all the sell orders at the previous close.
I got two shorts today, and they both sucked. I choked on my longs as well, lost net 2 cents on the day, shoulda made about 50 to 70 cents if I hadn't chickened too early.
 
"In hindsight, I should have only put in orders for the long side today, given my upside bias, or adjusted the sell envelope up significantly. Today's open seemed like a blow off low and a great long opportunity. I dropped the ball, but know what to do next time.

Corey"

i agree.i never want to short a big gap down open.i leave my short oo orders so that the stock must open up for me to get short.im not sure if this is the right thing to do but is most comfortable for me.
 
"i leave my short oo orders so that the stock must open up for me to get short.im not sure if this is the right thing to do but is most comfortable for me."

If the stock opens lower, you cannot get a fill because of the uptick rule.
 
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