Reading the Specialist.

[bali_survivor]

Quote from stock777:

I defy you geeks to 'beat the machine'

It can be done but I haven't seen any evidence here that you are on the right track.

It is hard (impossible?) to do with the ordinary retail software / indicators but it is being done with the right tools.

Even the "machine actions" can be read like an open book.

Have a nice day

Maria

 

[stock777]

Yes, but this is a book that can read back.

 

[cashmoney69]

Quote from Scalper007:

Wow, what an awesome post by DeeMan. Truly excellent stuff, although it may not help us now as tape reading is becoming extinct.

why's tape reading becoming extinct?..you're saying one day, day traders will no longer use an l2 and time and sales screen?

---

Quote from rateesquad:

Right, but what are you going to do when NYSE goes, from hybrid into fully automatic...

you mean the nyse will become eletronic?..is that what you mean by automatic?

 

[rateesquad]

yea...yea...thats what i meant

 

[Scalper007]

Quote from cashmoney69:

why's tape reading becoming extinct?..you're saying one day, day traders will no longer use an l2 and time and sales screen?


All I am saying is that when hybrid stocks begin to trade at 100 mph such as in nasdaq, it will be much harder to read the tape. Prices will be all over the place and will make no sense on L2 or T&S. I tried trading TXU today based on size bids and offers and I can tell you that it means absolutely nothing when the size gets taken out left and right in a matter of seconds. You get in and you say, "ok my out is here" and before you blink, the out is gone. However, I caught the damn thing at the bottom and closed out all my L2 screens and just watched the chart and held it for 30 cents, but as usual, it went up another 1.50... So if I had watched L2 screen, I woulda been out probably even because it came back to my entry point and took out my "out" price maybe 12 times before flying up.

 

[Bitstream]

readin' the tape in the tradintional sense got nothin' to do with L2 or time and sale...it's called the tape for a good reason: it's the freakin' ever changin' quotes and bid/ask/last size on L1 and that's it.

Quote from Scalper007:

Quote from cashmoney69:

why's tape reading becoming extinct?..you're saying one day, day traders will no longer use an l2 and time and sales screen?


All I am saying is that when hybrid stocks begin to trade at 100 mph such as in nasdaq, it will be much harder to read the tape. Prices will be all over the place and will make no sense on L2 or T&S. I tried trading TXU today based on size bids and offers and I can tell you that it means absolutely nothing when the size gets taken out left and right in a matter of seconds. You get in and you say, "ok my out is here" and before you blink, the out is gone. However, I caught the damn thing at the bottom and closed out all my L2 screens and just watched the chart and held it for 30 cents, but as usual, it went up another 1.50... So if I had watched L2 screen, I woulda been out probably even because it came back to my entry point and took out my "out" price maybe 12 times before flying up.

 

[cashmoney69]

bump. What a great thread!

 

[white17]

great post DeeMan: Thank you. It good to see so many of the old timers still around on this site.

 

[hottpotat0]

great post!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[cstu]

With all due respect to those here, and with the acknowledgement that I have not been on the floor in ten years, I will say.

The Specialist is officially irrelevant. I was a Specialist for ten years but all this "reading" the specialist stuff is foolish with how electronic the markets have become.