I think he is referrng to TonySanDiego's post from yesterday....
Don
Don's Openings, Part 6 2003
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I think he is referrng to TonySanDiego's post from yesterday....
Don
Lots of earnings out today so cancelled out a lot of orders. Even so I still had 4 fills on non earnings stocks. 3 longs, 1 short. All were positive although two of them took forever to make a move, missed one really good mover by getting stopped out to fast although because of other industry news I was a little afraid of it. FEAR-a traders best friend and worst enemy.
NO FEAR!....
If this is a "bad day" then you will be extremely happy in the long run.
Don't be "fearful" or "hesitant" or "remorseful" for taking a profit...
Don
Still feeling poorly so I didn't get up again today.
After the open, tried to trade a little bit.
CFC -.06 and glad to do so well..
Here was a case for eliminating the specialist. Had 10K showing on the book at .80, and a few above it. I thought CFC might be a bit overdone on the downside. Went long at .85.
All of a sudden I am looking at .70 bid at 1 lot. The specialist has effectively blinded me to what is happening. the order went off at .80, bounced up and down a bit and I got out at .79. So what function did the specialist serve, except to probably take advantage of the fact we could not tell anything about where the real market was.
Any time the bid/offer changes like that to an "away" number showing a 1 lot, the specialist is saying.. " I know what the market is, and you don't", maybe he is trying to lure buyers in, which is his proper function, or, more likely, trying to make a quick buck off the traders.
I suspect the ones who are so enamoured with the specialist system are just used to it. We tend to like what we are familiar with.
Sorry Don, I come down on the side of the "progressives" who would like to see major changes in the NYSE market.
Look at IBM yesterday. Does that look like an orderly market??
The buying is going to come in after a big dump, with or without the specialist.
In a big event, the specialist is NOT going to be there. Anybody who thinks so may be in for a rude awakening.
In other trading....
VZ +.13 in 3 tries..
CCU -.06 in 4 tries. It really wanted to go up, but the market had no bounce in it at all, at least while I was trading.
Have a profitable day.
After the open, tried to trade a little bit.
CFC -.06 and glad to do so well..
Here was a case for eliminating the specialist. Had 10K showing on the book at .80, and a few above it. I thought CFC might be a bit overdone on the downside. Went long at .85.
All of a sudden I am looking at .70 bid at 1 lot. The specialist has effectively blinded me to what is happening. the order went off at .80, bounced up and down a bit and I got out at .79. So what function did the specialist serve, except to probably take advantage of the fact we could not tell anything about where the real market was.
Any time the bid/offer changes like that to an "away" number showing a 1 lot, the specialist is saying.. " I know what the market is, and you don't", maybe he is trying to lure buyers in, which is his proper function, or, more likely, trying to make a quick buck off the traders.
I suspect the ones who are so enamoured with the specialist system are just used to it. We tend to like what we are familiar with.
Sorry Don, I come down on the side of the "progressives" who would like to see major changes in the NYSE market.
Look at IBM yesterday. Does that look like an orderly market??
The buying is going to come in after a big dump, with or without the specialist.
In a big event, the specialist is NOT going to be there. Anybody who thinks so may be in for a rude awakening.
In other trading....
VZ +.13 in 3 tries..
CCU -.06 in 4 tries. It really wanted to go up, but the market had no bounce in it at all, at least while I was trading.
Have a profitable day.
Quote from TonySanDiego:
Still feeling poorly so I didn't get up again today.
After the open, tried to trade a little bit.
CFC -.06 and glad to do so well..
Here was a case for eliminating the specialist. Had 10K showing on the book at .80, and a few above it. I thought CFC might be a bit overdone on the downside. Went long at .85.
All of a sudden I am looking at .70 bid at 1 lot. The specialist has effectively blinded me to what is happening. the order went off at .80, bounced up and down a bit and I got out at .79. So what function did the specialist serve, except to probably take advantage of the fact we could not tell anything about where the real market was.
Any time the bid/offer changes like that to an "away" number showing a 1 lot, the specialist is saying.. " I know what the market is, and you don't", maybe he is trying to lure buyers in, which is his proper function, or, more likely, trying to make a quick buck off the traders.
I suspect the ones who are so enamoured with the specialist system are just used to it. We tend to like what we are familiar with.
Sorry Don, I come down on the side of the "progressives" who would like to see major changes in the NYSE market.
Look at IBM yesterday. Does that look like an orderly market??
The buying is going to come in after a big dump, with or without the specialist.
In a big event, the specialist is NOT going to be there. Anybody who thinks so may be in for a rude awakening.
In other trading....
VZ +.13 in 3 tries..
CCU -.06 in 4 tries. It really wanted to go up, but the market had no bounce in it at all, at least while I was trading.
Have a profitable day.
If you are still conscious you SHOULD TRADE!
I've been ill these last 3 days and I'm up on my NQ positions!!!
ONLY STOP TRADING IF YOUR UNCONSCIOUS!!!
Just a side note to Tony: We tell all of our traders to stay away from IBM during the day....we have done that forever. The NYSE Specialist has little to do with the IBM trading. The CBOE option traders tend to move IBM whenever they like. They have a zillion times more money and the ability to do all this.
As far as "taking sides" on the OTC model vs. the Specialist model. I am always willing to search for some compromise. We need someone (or some way) to have markets made properly. OTC model allows for "walking away"....you know, who is going to buy on a really bad down day? Of course, the Specialist can "walk down, or walk up" a stock price as well.
Electronic, single place (central) markets will be the ideal...and we need to get those "bad apples" back into the groove.
I really hope that, as traders, we don't get too polarized on this issue. I think it's been very destructive to our Politcal System...the "Conservatives" vs. the "Liberals"....when, I feel that all people have opinions on both sides of the "aisle"...but get forced into voting with Hannity or Colmes.....
That's why I like to be labeled (if we must have a label) as the "Progressive Capitalist".... and I hope that more traders will think with their "bottom lines" than with their additction to one marketplace or another.
"Kinder and Gentler"...
Don
As far as "taking sides" on the OTC model vs. the Specialist model. I am always willing to search for some compromise. We need someone (or some way) to have markets made properly. OTC model allows for "walking away"....you know, who is going to buy on a really bad down day? Of course, the Specialist can "walk down, or walk up" a stock price as well.
Electronic, single place (central) markets will be the ideal...and we need to get those "bad apples" back into the groove.
I really hope that, as traders, we don't get too polarized on this issue. I think it's been very destructive to our Politcal System...the "Conservatives" vs. the "Liberals"....when, I feel that all people have opinions on both sides of the "aisle"...but get forced into voting with Hannity or Colmes.....
That's why I like to be labeled (if we must have a label) as the "Progressive Capitalist".... and I hope that more traders will think with their "bottom lines" than with their additction to one marketplace or another.
"Kinder and Gentler"...
Don
Not a bad idea, the only problem is that the traders/MM's oftentimes negotiate large option trades (spread prices, conversions, etc.) for a while....determine a price, and then trade the stock and the options quickly....so by the time you see the option blocks trading, the stock has already moved.
In 20 years, we haven't been able to figure out a way to read this particular tape well So, being the geniuses that we are, we simply back away from it. LOL
Don
Re: ibm
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Quote from GATrader:
Don, would you use the tape of ibm options as a short term indicator of ibm if the option pits dominate the ibm action?
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No kidding Don, I agree 100%, the options guys dont wait around, the trade on the cboe and the exchange are done at the same time. I went to a presentation last night with a guy from ISE that was very good. It is amazing what the big options traders do.
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Quote from GATrader:
Don, would you use the tape of ibm options as a short term indicator of ibm if the option pits dominate the ibm action?
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No kidding Don, I agree 100%, the options guys dont wait around, the trade on the cboe and the exchange are done at the same time. I went to a presentation last night with a guy from ISE that was very good. It is amazing what the big options traders do.
Thanks for pointing it out....this is why I cringe a bit when some relative new "retail" traders try to get involved in trading options.
Don
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