Just wondering if anyone here has any comments about LiquidityQuote since it went live for the 28 dow stocks on Friday? I haven't traded one of the dow stocks since then so I'm just curious as to others' experience with it???
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NYSE LiquidityQuote Experiences???
- Thread starter listedguru
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Since it's called the NYSELiquidity Quote, I would imagine it to be all of the Dow 30stocks EXCEPT those that are NOT traded on the NYSE. Those would be INTC and MSFT.
So far, (with only two days experience with this), I haven't seen much of a change in the way Citi or JPM trades. The smaller trade throughs are still offering decent price improvement, and the LQ seems to be moving along with the market. I haven't seen the market slam up against the LQ and stop, except, for example, like going into 45.00 in the last 1/2 hour today. But there's usually good size at the point, and I doubt if that was because of the LQ.
OK, sorry to keep posting one after another here,..
but as I'm reading through the above site, I realized a potential "gotcha" that would be good to stay aware of.
The Liquidity Quote can just be a summation of what's in the book. It "may" contain additional shares from the crowd or specialist, but then again it may not.
So, at least for my setup, I'll have to do some fast math/estimating to see if there are additional shares being bid or offered at that level. It may just be a repeat of what I'm already seeing in the book.
For example, looking at JPM right now, (midday doldrums), it's trading at the point (36.00) and the offers in the book show 1800 at .02, 1200 at .03, 2500 at .04, and 2300 at .05, with a liquidity quote of 13,200 at .05.
So, that tells me there's currently 7800 offered in the book, with another 5400 coming from the floor and specialist.
Watching this for a while shows that it will bounce all over the place--right now, it's down to 2200 shares by the crowd/spec...
I guess the value of this, and my ability to do fast comparisons, remains to be seen.
but as I'm reading through the above site, I realized a potential "gotcha" that would be good to stay aware of.
The Liquidity Quote can just be a summation of what's in the book. It "may" contain additional shares from the crowd or specialist, but then again it may not.
So, at least for my setup, I'll have to do some fast math/estimating to see if there are additional shares being bid or offered at that level. It may just be a repeat of what I'm already seeing in the book.
For example, looking at JPM right now, (midday doldrums), it's trading at the point (36.00) and the offers in the book show 1800 at .02, 1200 at .03, 2500 at .04, and 2300 at .05, with a liquidity quote of 13,200 at .05.
So, that tells me there's currently 7800 offered in the book, with another 5400 coming from the floor and specialist.
Watching this for a while shows that it will bounce all over the place--right now, it's down to 2200 shares by the crowd/spec...
I guess the value of this, and my ability to do fast comparisons, remains to be seen.