livingston's class

Hi LIvinston,

An early morning question to start the day:
Do you use charts (bar, etc.) during the trading day, or only the screens showing the depth of the bids/offers, and time and sales?

I'm wondering if you had access to the number and size of resting orders away from the market, AND were updated continuously in real time as to trades taking place, including price and volume (size), if you'd have everything you need for tape reading a stock?

Also, do you look at other "indicators" for gauging the NYSE?
For example, I knew one of the locals in the S&P pit at the Merc. They often watched the 30-year bond futures, the S&P options, and the Dow in assessing what the S&P was doing or going to do.

Thanks again for your time and help!
 
Livingston or anyone, can you pls help shed some light on this? Thanks

Very often I see prints that are outside the best bid/best ask quote. The number of shares can range from 100 shares to a few thousand shares. The difference in price can vary from 2-10 cents say for example. I will show some examples below.

My question is do they mean something or do I have to see the next few prints to determine their meaning? (Here I'm not talking about huge size that caused the NYSE specialist to spread up). I've been scratching my head trying to think what this means but do not have much of a clue yet. Most of the time, the reaction will go 1 way for a couple of cents, then the other way for a couple of cents until a direction is determined.


Eg:

Eg 1
50.00 bid at 50.01 offer , 500 * 300 shares
Tape will show 100 shares @49.85

Eg 2
50.00 bid at 50.01 offer , 2000 * 2500 shares
Tape will show 1500 shares @50.02


Thanks
 
they are late prints or negotiated trades if big blocks...also some traders that get to better price or have access to regional exch or maybe hidden liquidity pools.
 
Quote from Bitstream:

they are late prints or negotiated trades if big blocks...also some traders that get to better price or have access to regional exch or maybe hidden liquidity pools.
More...

right, the banded green (offer), or banned red (bid) are outside of the "current spread" are either late prints or large negotiated trades. The reason I put quotations around current spread is because when the trader offered/bid a couple of seconds ago, that spread existed but hasn't filled yet, and now, a couple of seconds later, the spread changed. Usually this happens if when one sells into a locked book (1x1) then prints go off, and gaps up/down.
 
livingston-

market shorts on open....when I see a huge size at either the close price or a penny below it, it can usually be a seller's market short right? What I would do is if I conversions on that stock, and that stock had bad news/downgraded, etc... I would go sell on market, get the first print and usually it does step down, and I would be 20 cents or so in the money because I shorted on market.

My question is, what if the price is a penny above the offer and has huge size in the book, does that mean anything? I know that if it's right at the close price, it can be still good as I don't know if it closed on an uptick or downtick. If it's a penny below the close price, it's good right?
 
Quote from trader56:

Thanks once again, Livingston!

Another question:
One tactic that's employed sometimes, at least in futures, is to have a "core" position, and sort of trade around this throughout the day.

So, you might be long 100 contracts on an up day, but selling some on the rallies, and buying them back and adding to the position on the dips. As time goes on, you're building a bigger and bigger long position because the market is going your way in the longer term, but you're taking profits and adding on the short-term fluctuations. This is based upon the ebb and flow of the orders, among other things.

Is this type of strategy employed in your trading style at all?
Would it be worth considering for equities?

Thank you for your time and help!
More...

this is an excellent strategy and the way to go if u are after serious buck...some stocks are particulary good for this, like sbux today...nice rallies with relatively predictable intervals and tops with tiny retracements; that's what makes this add/cut/ add again 'till session end or there about so attractive.
 
Quote from trader56:

Thanks for the comments, Bit, bill, and FF!

It's great to see more participation in this thread!
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hey anytime bro, I'm learning as well and the strategy you mentioned sounds like "adding a leg", dollar cost averaging where you buy some more on the dip but the general trend is going in one way. Selling some off at the end of the rally will definitely give you some profit to feel comfortable and let the rest ride. I'm currently scalping right now but want to do more positions and will definitely keep this in mind.
 
Quote from Bitstream:

this is an excellent strategy and the way to go if u are after serious buck...some stocks are particulary good for this, like sbux today...nice rallies with relatively predictable intervals and tops with tiny retracements; that's what makes this add/cut/ add again 'till session end or there about so attractive.
More...

right, I would imagine if a stock is downgraded/upgraded, has news, missed earnings/exceed earnings etc... will tend to have a clear trend all day.
 
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