HRB Today

the_dude · Mar 8, 2002

Anyone know what happened with HRB today - at around 14:00 EST?

I bought at 46 for a swing trade, then watched in disbelief as the spread almost instantly went to 45.50x45.90. As I didn't know what was going on, I covered on Instinet without losing much, as I could not split the bid and offer. Specialist would not let me out.

Currently it is trading at 46.30x46.34.

Now, usually I prefer to trade NYSE, but dropping the bid like that seems to clash with the "fair and orderly market" slogan.

NvrSettLe · Mar 8, 2002

mgkrebs · Mar 8, 2002

that type of action is not unusual. Today I was long gm at something .68, bid moves up to .83 offer at .89 or so, lookin' good and in a heartbeat it's .65 bid at .85. It happens. That's a pretty liquid stock, one would think, but when the specialist gets a big order, he spreads the spread to accomodate.

Rigel · Mar 8, 2002

You got suckered Dude.
By the specialist probably.

ddefina · Mar 8, 2002

Good thing price improvement offsets those big spreads in the long run! At least thats what I hear.

NihabaAshi · Mar 8, 2002

Originally posted by the_dude
Anyone know what happened with HRB today - at around 14:00 EST?

I bought at 46 for a swing trade...

the_dude, do you only use Level II when you swing trade?

Out of curiousity, if you use chart patterns or some sort'uv setup...what exactly did you see (patterns) at around 2pm est to merit a Long Position Swing Trade?

Nihaba Ashi

the_dude · Mar 8, 2002

Originally posted by ddefina
Good thing price improvement offsets those big spreads in the long run! At least thats what I hear.

I've heard that somewhere, too.

Usually when I get fucked by a specialist it's a little less random, and more generic and predictable. I was waiting for him to do something in a more typical, retarded fashion.They're not "brain surgeons," you know!

the_dude · Mar 8, 2002

Originally posted by NihabaAshi

the_dude, do you only use Level II when you swing trade?

Nihaba Ashi

I wasn't aware that NYSE stocks had a level 2...maybe you are referring to openbook? No, I do not have openbook.

No offense, NihabaAshi, but this is about the last place I'm going to talk about why I chose that trade!!! It's a pretty generic setup, though. No waves, gurus, or sines involved!!!

NihabaAshi · Mar 8, 2002

Originally posted by the_dude

I wasn't aware that NYSE stocks had a level 2...maybe you are referring to openbook? No, I do not have openbook.

No offense, NihabaAshi, but this is about the last place I'm going to talk about why I chose that trade!!! It's a pretty generic setup, though. No waves, gurus, or sines involved!!!

Sorry about that...I don't trade NYSE stocks (never have)...I'm just use to the term Level II.

Also, I saw too much into your question when you said...

Anyone know what happened with HRB today - at around 14:00 EST?

Didn't mean to bother you...carry on with the generic setup.

Nihaba Ashi

DATTrader · Mar 8, 2002

Originally posted by mgkrebs
that type of action is not unusual. Today I was long gm at something .68, bid moves up to .83 offer at .89 or so, lookin' good and in a heartbeat it's .65 bid at .85. It happens. That's a pretty liquid stock, one would think, but when the specialist gets a big order, he spreads the spread to accomodate.

OK as a OTC trader I will totally expose my limited knowledge of listed market action here but I am confused by what this statement implies and have been for quite some time.

Someone correct my understanding please. There is one NYSE specialist for HRB or GM or any other stock traded there. So he/she gets a big order of which he/she may have to take some of the other side in making a market so they move the spread wider to protect themselves....that much is clear and makes sense.

My confusion lies in the fact that simultaneously the other exchanges are bidding/offering for the same stock. I am guessing that when you refer to the bid dropping 30-40 cents in this type of situation, the bids on all the exchanges move accordingly. So is the presumption that they simply see the NYSE specialist taking their bid down and then do the same, interpreting it as a sign that there is a large seller in the market? Seems that with only 6 exhanges (or whatever) that it would be too easy to manipulate the market if one were a specialist. Any insights into the mysterious world of listed stocks is appreciated.