The Opening Orders Thread

Quote from Don Bright:

OK, let's remember that we have already adjusted the "expected" opening price way down to reflect the overall market opening way down. For example, if a stock closed at 36.70, and we expected it to open at 36.40 (based on the overal market opening down a bunch)...if we used a 1.1 buy envelop, we would be so far out of range that we would rarely get our orders filled.

The wider sell envelope is to insure that our offer is above yesterday's closing price. You don't want to sell slightly up when the market is opening way down. That would indicate a stock that is stronger than the overall market, not something we would want to be short.

I hope this helps!

Don
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Hi Don,

Thanks for your response! so just to clear this up, for this past monday, the .3 buy envelope you were using was further adjusted downward to compensate for the futures opening downward right? Hence the actual % adjusted downward was more than 3%? I guess i've been reading everyone's envelopes incorrectly :( I thought everyone's been posting their adjusted envelopes. Thanks for your help!!!
 
Quote from na3im:

hello eastside,

what was your entry order on T, if you don't mind telling me.

Thanks.
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I had a limit order to buy OPG at 40.61 & he opened at 40.59
 
Quote from sucre_estave:

1 long bunt single on TYC, +52, 2000 shares
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Good work.
I cancelled when I saw his opening indication way down at 33 - 33.50 on no news...he indicated the same yesterday & I cancelled. Plus, he & DOW are on watch for removal from my OPG list for bad behavior of late :eek:
 
Quote from eastside:

Good work.
I cancelled when I saw his opening indication way down at 33 - 33.50 on no news...he indicated the same yesterday & I cancelled. Plus, he & DOW are on watch for removal from my OPG list for bad behavior of late :eek:
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I was wondering why TYC gapped down so much myself, as I saw nothing on the newswires. I ignore opening indications.
 
Quote from boostin1004:

Hi Don,

Thanks for your response! so just to clear this up, for this past monday, the .3 buy envelope you were using was further adjusted downward to compensate for the futures opening downward right? Hence the actual % adjusted downward was more than 3%? I guess i've been reading everyone's envelopes incorrectly :( I thought everyone's been posting their adjusted envelopes. Thanks for your help!!!
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Yes, we first adjust for where the futures are trading.

We take the spot price (SPX) and the current day's Fair Value (www.stocktrading.com/Tradinginfo.htm) and end up with a number. We take the difference between that number and where the futures are actually trading to "guess" where we think each stock "should" open, and then adjust with envelopes from there.

Today, I guess I missed the memo on BUD, managed to scratch it. HAL was "ok" +$200.

Don
 
Quote from Don Bright:

Yes, we first adjust for where the futures are trading.

We take the spot price (SPX) and the current day's Fair Value (www.stocktrading.com/Tradinginfo.htm) and end up with a number. We take the difference between that number and where the futures are actually trading to "guess" where we think each stock "should" open, and then adjust with envelopes from there.

Today, I guess I missed the memo on BUD, managed to scratch it. HAL was "ok" +$200.

Don
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gotcha. Thanks for the explanation. I've been using equal envelopes this whole time and your reasoning makes sense. I'll give it a try tomorrow. Thanks
 
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