TAPE READING (chat room cont.)

[Don Bright]

Quote from Maverick74:

It matter to those who are going to spend 2k or whatever he is charging for his training. So yes, I guess it does matter.

I'm still a bit confused at what you are looking for from me...I think you'll have to admit that I'm pretty open and responsive to everyone's questions.

Our training is only $1,000, and allows for return visits. We cover everything from (current) styles of tape reading, trade throughs, PRem, Disc to FV, size and price, "price goes to size", and give examples, via several slides on how to recognize and follow a short seller, to block prints (how to recognize prior movement), and a number of other things.

The example of size at bid and offer on a $100 stock was simply not enough information to make a good entry point decision.

This thread has gotten too long, too fast...perhaps I missed something....let me know.

Don

 

[USAtrader]

Simple: Nothing, with only that information.

Quote from shortseller:

ABC STOCK IS PRESENTED AT

100.00 (56k) X 100.05 (100)

All other factors being equal for the sake of discussion.

do you A go long at the bid ?

do you b go long at the offer?

do you c short at offer ?

do you d place short at bid ?

 

[Don Bright]

Quote from USAtrader:

Simple: Nothing, with only that information.

My point exactly.

Don

 

[Maverick74]

Quote from Don Bright:

I'm still a bit confused at what you are looking for from me...I think you'll have to admit that I'm pretty open and responsive to everyone's questions.

Our training is only $1,000, and allows for return visits. We cover everything from (current) styles of tape reading, trade throughs, PRem, Disc to FV, size and price, "price goes to size", and give examples, via several slides on how to recognize and follow a short seller, to block prints (how to recognize prior movement), and a number of other things.

The example of size at bid and offer on a $100 stock was simply not enough information to make a good entry point decision.

This thread has gotten too long, too fast...perhaps I missed something....let me know.

Don

Don, that is all I wanted from you. I didn't believe you guys taught your student to step in front of size and trade that way. I just wanted to ask before I assumed based on Shortseller's post. He says he knows you very well and worked in your office so I just wanted to see if you were teaching that. I am assuming from your post, that you do not teach that.

 

[Don Bright]

Quote from Maverick74:

Don, that is all I wanted from you. I didn't believe you guys taught your student to step in front of size and trade that way. I just wanted to ask before I assumed based on Shortseller's post. He says he knows you very well and worked in your office so I just wanted to see if you were teaching that. I am assuming from your post, that you do not teach that.

We never teach to get in front of a large order, since "price moves to size (and through, quite often)...what we teach is, that more often than not...the "not so well trained" guys place orders a penny or two in front of big orders, thinking that they have a great "stop loss" just a penny away....and, as we all know, that's rubbish....when the offer goes, it goes all the way, and these guys go scrambling to cover shorts, etc....THUS running the stock up through that big order price.

How have the options been treating you , Mav?

Don

 

[Maverick74]

Quote from Don Bright:

We never teach to get in front of a large order, since "price moves to size (and through, quite often)...what we teach is, that more often than not...the "not so well trained" guys place orders a penny or two in front of big orders, thinking that they have a great "stop loss" just a penny away....and, as we all know, that's rubbish....when the offer goes, it goes all the way, and these guys go scrambling to cover shorts, etc....THUS running the stock up through that big order price.

How have the options been treating you , Mav?

Don

OK, that's exactly what I told him Don. I didn't think you guys taught that. Options are treating me well. Thanks for asking.

 

[eusdaiki]

Mav

what should one look for in the tape when reading it on NASDAQ stocks, or on the CME futures?

since there's no specialist... is all your analisis only appliable to NYSE, or does it apply to markets without specilists?

 

[Maverick74]

Quote from eusdaiki:

Mav

what should one look for in the tape when reading it on NASDAQ stocks, or on the CME futures?

since there's no specialist... is all your analisis only appliable to NYSE, or does it apply to markets without specialists?

Nasdaq and futures are worthless. No way to read the tape. This applies only to specialists. The specialist system is very unique in that you have one person who sees both sides of the order flow and makes their market accordingly. This is why when the NYSE goes 100% electronic with multiple ECN's, the days of tape reading will be over. You can't read an ECN because you have fragmented order flow. It's a unique edge that applies to one market. Enjoy it while you can!

 

[FuturesTrader71]

Quote from Maverick74:

Nasdaq and futures are worthless. [...]

You mean.... your observations on tape reading based on activities of the specialist on the NYSE would be worthless on the Nasdaq and in futures trading. The tape doesn't lie. It can be manipulated, but it can't lie. The tape is what charts and everything else is based on. There are still way to read the tape which are useful in all products.

Best regards.

 

[Maverick74]

Quote from FuturesTrader71:

You mean.... your observations on tape reading based on activities of the specialist on the NYSE would be worthless on the Nasdaq and in futures trading. The tape doesn't lie. It can be manipulated, but it can't lie. The tape is what charts and everything else is based on. There are still way to read the tape which are useful in all products.

Best regards.

Well you are using the word tape reading as an ambiguous term. Reading the tape as it pertains to listed stocks is very unique in that there are very specific behavior patterns that can be detected. We are talking about one individual here. Not millions. For example, watching the NQ dome and saying, there is resistance here at this level is not tape reading. Watching 400 shares print at .81 and watching that same 400 now bid .81 is tape reading. There is a huge difference here!