Don's Openings, Part 6 2003
- Thread starter Don Bright
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I thought I had a good understanding of the uptick rule, but on reflection I'm not 100% sure I understand how it applies to opening orders.
Is it necessary for the short sale opening order limit price to be higher than yesterday's close? In which case I could have problems in on those days where the futures before the open are much lower than yesterday's S&P cash close, resulting in sell envelope prices that are below yesterday's close? (probably not common)
Or is it that yesterday's last tick must have been a plus tick or zero plus tick, in which case I should be looking at enough of the last ticks from yesterday for each stock to determine whether the last tick was a plus or zero plus tick?
Or does the uptick rule not apply at all to opening orders, applies only to orders within the same trading session?
Thanks.
Gary
Is it necessary for the short sale opening order limit price to be higher than yesterday's close? In which case I could have problems in on those days where the futures before the open are much lower than yesterday's S&P cash close, resulting in sell envelope prices that are below yesterday's close? (probably not common)
Or is it that yesterday's last tick must have been a plus tick or zero plus tick, in which case I should be looking at enough of the last ticks from yesterday for each stock to determine whether the last tick was a plus or zero plus tick?
Or does the uptick rule not apply at all to opening orders, applies only to orders within the same trading session?
Thanks.
Gary
The standard definition for "legal uptick" applies. If the last sale from the previous day was an uptick, than a "flat" opening price will be a legal uptick....and the obvious lower price is a downtick etc.
Don
So far, the "other guys" don't have any bullet alternatives, or at least I am not aware of any. I suppose conversions are still "in", at least for now, but I don't have any one stock I like enough to get a conversion on.
This has pushed me even harder toward going back to Nasdaq stocks. Much easier to get short if you want to.
And.... I was already totally tired of dealing with the specialist way of doing things. Not that some folks can't win at that game (don..
) but the deck is stacked even more against me. I like to see the true picture of where bids and offers are, even if it is a fleeting glimpse. I am displeased when the specialist shows a 1 lot offer .10-.12 cents away and there are orders all over the book in between. And futhermore, the NYSE book is not a true or real time picture anyway, just a possible indication. And, there are always the floor traders that come out of left field with orders no one sees. Let them get into the same boat with the rest of us and buy and sell in a true market place.Enough ranting.. I will try Nasdaq again, and I will let you all know how it goes. I will also still do some OO when and if I get enough backtesting history to allow me to see a true edge. Right now, I see too much variance in my results with the stocks I am sending. Some days are good, but the bad instances cause too much damage.
cheers..
Quote from TonySanDiego:
So far, the "other guys" don't have any bullet alternatives, or at least I am not aware of any. I suppose conversions are still "in", at least for now, but I don't have any one stock I like enough to get a conversion on.
This has pushed me even harder toward going back to Nasdaq stocks. Much easier to get short if you want to.
And.... I was already totally tired of dealing with the specialist way of doing things. Not that some folks can't win at that game (don..
Enough ranting.. I will try Nasdaq again, and I will let you all know how it goes. I will also still do some OO when and if I get enough backtesting history to allow me to see a true edge. Right now, I see too much variance in my results with the stocks I am sending. Some days are good, but the bad instances cause too much damage.
cheers..
Tony...."stop it!"....what the hell do bullets have to do with the openings? We never ever use bullets on the opening, and yet we all make money week after week...I really hate to see you 'losing it" again....but wish you the best....
If someone can't win at blackjack or poker, they certainly can't win at roulette (nasdaq)...anyway...I hope the "party poker' is working well LOL....
Lighten up your thinking a bit...I really think it will help...."ya gotta step back once in a while"..."get back to basics again"...
My offer is still open....come on down, keep your firm....I'll put you right next to my brand new bootcampers for a couple of days...
Don
Don, what's your beef with NASDAQ again? I know you've said in the past that the bids and offers of the MM's can just disappear in a flash, but we've all seen similar volatility in NYSE stocks (while the specialist holds your order). The price improvement arguement doesn't fly anymore since the inception of decimalization.
Just wondering.
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