Anyone notice an uptick exempt edge?

Discussion in 'Trading' started by cashonly, May 5, 2005.

  1. cashonly

    cashonly Bright Trading, LLC

    I've been watching the uptick exempt stocks and with the exception of extreme S&P down moves, I haven't really noticed any edge.

    Even then, there are significant spreads in these stocks so you better be right.

    But in general, I don't see that they are having any more significant volatility or movement than non uptick exempt stocks.

    Anyone see anything different?
  2. i've noticed more fragmentation of size..... sort of like the specialist are backing off more than usual. maybe more auto bidding being allowed.
  3. God damn it! I guess Ford isn't on list A. That would have been a sweet fill, short size F at 9.96!
  4. There is a small edge, but you got to be good! :) Some system traders are reporting better fills.
  5. The only edge will be that you can short when and where you choose. Other than that I would expect a slight disadvantage due to extra competition for a short at any given level.

    Once again, you get paid only for being right, not for showing up.
  6. Good advice. Maybe you should take it yourself. :eek:

    One does not get short at random. One gets short when it makes sense.

    Now, anyone can short at the most opportune time , with no bullet, option hedge, or knack of selling the offer.

    Lesson over.
  7. By the way there are 10,000 stocks. Does that mean there's no competition for longs ?

  8. Good. My last comment buried another thread.

  9. Well, I have certainly found an edge in getting short some of these stocks that I trade, I dont encounter too much competition, and I trade profitably. So far, looks like a winner to me. I anticipated there would be a few ways to play these stocks and so far I am proving myself correct. :)

    Seems like the market just pays me to show up!:)

  10. Do you stare at yourself in the mirror for hours and praising what a super trader you are? No really, cause you have to mention in your every single post how great you are doing and how you have been doing great forever and ever and ever. Ok, the point is understood, you are SUPER DUPER so enough with the bragging already. If you need that much self reassurance, go get some professional help cause your nonstop egotistical posts only make others having a rough time feel worse. Most are having a rougher time every day, my office was practically empty by 12pm today, I have been in for a total of 7 hours in the last week and a half so the last thing I need to hear is how great it is for your pompous a$$. If you wanna help out a little, that is very cool but as for your nonstop praise for yourself, well take that sh*t and shove it where the sun don't shine and hopefully you will finally get enough of yourself.

    But besides that, lets get back to the thread. See, unlike mschey the super duper billionaire trader, I, Hydroblunt, the barely any motivation to go in anymore trader, will actually say smth informative about the possible "edge" of the uptick exempt stocks. There is one and it's actually not worth what you give up. You lose 2 edges to gain one, so far it's not worth it but at least there is smth. You give up market short take downs and bounces in order to be able to get short that stock that just blew off psychotically and spiked. Prior, it was near impossible to be short when the buyer was finished unless you were almost gambling and guessing, now you just hit the bid with the sellers. Of course, since everyone and their mother can jump in, the pullback move is cut down but hey at least it's actually possible to get in. On the stocks with the steadier buyers, it is sometimes an edge to just hit bids as the buyer is finishing but once again, too many ppl getting short usually makes it a tough ride to capture any profits. The moves are cut down thanks to all the programs & daytraders fighting for pennies.

    IMO, it's a disadvantage. Market shorts & bounces happen about 10 times more than those crazy blow off spikes so in essense you are giving up more opportunities for less. Simple bounces are like the safest and best risk/reward trades on NYSE, and now 1/3rd of them are gone for the wonderful chop chop mess. Just take a look at how most stocks in the Pilot program are trading when they are not in play, which is roughly 80% of the time. Whipsaw just like the futures. Even with action some of these are a horrific nightmare thanks to this rule. I trade CAI, he is in the list, better moves were made with the uptick rule. It's a thin stock and it is on occasion an edge to hit the bids fast right prior to the move down but overall it is not worth the chop chop whipsaw that you have to deal with most of the time.

    Like someone said before in a prior thread. You can short the futures and ETFs on downticks. You rich yet?
    #10     May 9, 2005