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NYSE liquidity quote/effects on price improvement?
- Thread starter cornholetrading
- Start date
Quote from Dustin:
This is one of the last true inefficiencies in the stock market and they are going to take it away. I really can't argue with them because efficiency is good for the public, bad for us. The market is set up for investors & funds, not traders.
I'm afraid that's very true, but there might be hope: Look at the eminis. They are one of the most efficient markets, and they are so efficient that the tremendous amount of liquidity attracted by their efficiency seems to create new opportunities for scalpers.
Unfortunately, I seem to be too dense for scalping the eminis. I have been doing a lot better with listed stocks. Maybe not much longer...
Quote from Dustin:
Ditto.
This is one of the last true inefficiencies in the stock market and they are going to take it away. I really can't argue with them because efficiency is good for the public, bad for us. The market is set up for investors & funds, not traders.
traders are markets. and 'inefficiencies' or rather, imperfections, will exist as long as people do. If the big markets of today overmechanize in an effort to eliminate imperfections, they will stifle themselves, and real, robust markets will spring up to serve real, robust human beings.
what i see happening on the NYSE is that one group of traders (specialists and the crowd) is trying to freeze out another (screen traders) simply because the pie has shrunk dramatically. They can do this because they make the rules and the market.
Quote from chasinfla:
traders are markets. and 'inefficiencies' or rather, imperfections, will exist as long as people do. If the big markets of today overmechanize in an effort to eliminate imperfections, they will stifle themselves, and real, robust markets will spring up to serve real, robust human beings.
chasinfla,
your the man!
Quote from dalegrief:
I can't believe this thread isn't huge, I guess there aren't as many listed scalpers out there as I think.
I started noticing this in the Broker stocks a week and a half ago, they are definately harder to trade now. I heard a rumor back then, that it was new specialist software that tracks the futures, probably the e-minis, and links it with their bid ask. This is what feels like is happening. the bid ask will be
40.10 x 40.15 with size 40x45 and the minis will tick up a point and suddenly the bidask is 40.20x40.22 with size 35x50. There will be no print of the 40.15 size, he just changes the bid ask. It really makes entering stocks impossible, and then with the issue of not getting price improvememt, and prints outside the bid ask out of nowhere, which I also have noticed, it makes me think Nasdaq time, or maybe futures?
I think the NYSE is making a big mistake, I bet if you add up all the scalping volume on the NYSE it is very significant.
What can we do about this guys? Or how do we beat it?
does anyone else know anything about possibly software linking quote to the spoos... this would seem to confirm what i have been seeing too, that the spreads appear to be unusually sensitive to the spoos... when i first noticed this i was thinking, damn these guys are good, and fast, or is my quote slow... i know the specialists track the futures as well but to have it electronically linked is shrewd, and challenging. Has anyone else noticed anything unusual? as far as beating it i am a believer that no matter what the regulators do i.e. PDT, decimals, liquidity quotes, etc... it should open up new oppurtunities, liek an einstein for every action....
but the closer NYSE moves to NASDAQ i agree it removes a huge edge...one that i make a lot of profits from and can ill affors to lose.
Quote from mixer:
I think the risk of scalping is becoming to great, the easy scraps just aren't there anymore.
I think a scalper should not be concerned about the abstract notion of risk. If you made money last week, chances are you will make money this week. If you don't, there is a serious problem and you have to re-evaluate. It's not as if a week were not a representative sample for a scalper.
Quote from Ron In-a-sauna:
does anyone else know anything about possibly software linking quote to the spoos... this would seem to confirm what i have been seeing too, that the spreads appear to be unusually sensitive to the spoos... when i first noticed this i was thinking, damn these guys are good, and fast, or is my quote slow... i know the specialists track the futures as well but to have it electronically linked is shrewd, and challenging. Has anyone else noticed anything unusual? as far as beating it i am a believer that no matter what the regulators do i.e. PDT, decimals, liquidity quotes, etc... it should open up new oppurtunities, liek an einstein for every action....
but the closer NYSE moves to NASDAQ i agree it removes a huge edge...one that i make a lot of profits from and can ill affors to lose.
this has to do with the ever growing percentage of the volume that stems from program trading - it was up around 40% of NYSE volume in the latest week - a massive amount.
this new thing might be downright criminal, if you trade WMT you know what i am saying....complete BS today, although i still made money so i am not just crying sour grapes!