Don's Openings, Part 6 2003

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Quote from swtrader:




I'm new to this, so I exclude news so that I dont freak out.

What you could do, as a compromise would be to compute a wider envelope on stocks with news, so that you only catch them if their move is more extreem
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Brilliantly simple. This makes perfect sense. What I will implement is something that basically takes whatever envelope I plug in and then multiplies it by 1.5. Therefore, if I use .8 envelope for no news items, then I will use 1.2 for news items.

Does anyone else have comments?
 
Some post they avoid news and others post that they don't avid news stocks. People use the word news like there is news and no news. Its, of course, as we all know that have traded for awhile is not that simple.

Most or all of the stocks i trade on the open have several news stories everyday. The real story of news is dealing with it. You must figure which news story will have an effect on the stock and how. In my opinion interpeting the news is one of the couple of keys factors for sucess in the open orders. Its very easy to have a positive winning percentage with open orders, its avoiding the big losers that makes it a profitable strategy and i think experience with news goes a long way to avoiding the big losers.

at least once every week a news story for one of my open order stocks that i think is a non event and will not effect the stock will move it big.

Good luck
 
Quote from egusc:

Some post they avoid news and others post that they don't avid news stocks. People use the word news like there is news and no news. Its, of course, as we all know that have traded for awhile is not that simple.

Most or all of the stocks i trade on the open have several news stories everyday. The real story of news is dealing with it. You must figure which news story will have an effect on the stock and how. In my opinion interpeting the news is one of the couple of keys factors for sucess in the open orders. Its very easy to have a positive winning percentage with open orders, its avoiding the big losers that makes it a profitable strategy and i think experience with news goes a long way to avoiding the big losers.

at least once every week a news story for one of my open order stocks that i think is a non event and will not effect the stock will move it big.

Good luck
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Well said!! The actual news story is what makes me decide whether to exclude the stock or not. If they announce some minor accounting revidisons, I won't care much....if their CEO is taken away in handcuffs, then I may add to the buy side (only kidding!!)....you get my drift. Buy on Rumor, Sell on News. Price precedes news (almost always, check INTC from yesterday).

Back to you...

Don
 
Small opening...BMY and HD +370 (had to ride HD for 5 minutes, but it came down and broke the opening price for a few pennies. I got out of BMY waaaay too soon...."coulda" made another $1000 or so....oh well....that's the way it goes. +18 cents.

Used a 1.0 envelope....adjusted prices to reflect the bottom 1/3 of opening indications where applicable.

Don
 
I made about 85 cents today using the algorithm I cited yesterday:

If no news, then envelope of .7

If news, then envelope * 1.5

20 fills managed with time and volatility based trailing stops

thanks for the recommendation
 
Quote from sshakhshir:

I made about 85 cents today using the algorithm I cited yesterday:

If no news, then envelope of .7

If news, then envelope * 1.5

20 fills managed with time and volatility based trailing stops

thanks for the recommendation
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glad it worked for you - I am still excluding news stocks, but may add it in under a similar plan - there has been some debate about what is news and what isnt, but it is all a matter of personal choice and comfort
 
Just wondering if my data is off for today's open..I noticed something interesting (if the data is correct)


Stock pclose open
C 37.11 37.12
MWD 42.54 42.55
MER 41.98 41.99
GS 73.62 73.63
LEH 58.22 58.23
JNJ 54.68 54.69
CCU 42.72 42.73

Now, if my data is correct, they all opened on a plus tick from the Pclose, so if your Limit Short was under the open price, you should have gotten a short fill. Did anyone get filled on these? I didn't get filled in any of these..what am I missing?? Don?

thanks,

cas

ps. O...and did I mention that they all dropped right away after opening?
 
Quote from cas:

Just wondering if my data is off for today's open..I noticed something interesting (if the data is correct)


Stock pclose open
C 37.11 37.12
MWD 42.54 42.55
MER 41.98 41.99
GS 73.62 73.63
LEH 58.22 58.23
JNJ 54.68 54.69
CCU 42.72 42.73

Now, if my data is correct, they all opened on a plus tick from the Pclose, so if your Limit Short was under the open price, you should have gotten a short fill. Did anyone get filled on these? I didn't get filled in any of these..what am I missing?? Don?

thanks,

cas

ps. O...and did I mention that they all dropped right away after opening?
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first nyse print:
c 36.90
mwd 42.29
mer 41.55
gs 73.16
leh 57.85
jnj 54.69
ccu 42.40

each had a small nasd print ahead of the nyse. not sure whats up with that.
 
ok, thanks vhehn..i thought something was strange. I checked those with 2 sources (Esignal and FirstAlert) They must be picking up that NASD print as the open price. Nice pattern on the +.01 then the NYSE prints lower. hmm.

thanks,

cas
 
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