Just wanted to see if anyone here does or knows of someone who daytrades the BBH (Biotech holders) successfully? I've noticed it has great intraday range but the spread is pretty brutal. Not really sure if it can be traded successfully intraday as I have never tried it. Also wondering if it is exempt from the uptick rule like QQQ? Leland
IMO, there is no real advantage to be able to short on a town tick, nowadays with the decimalized pricing, there are plenty of upticks on the way down. Also, if you are interested in playing bio stuff, HGSI and PDLI are good stuff, especially HGSI, great liquidity. on the NYSE side I have limited experience, but DNA is on my 'never trade' list. The thing gaps all over the place. Tough tough specialist.
Leland Charon, The spread will kill you on this one. They are only good for swing trading. BTW, Do you know what Tobias is up to with Instipro? If my memory is correct you used to trade with Tobias, right? Bill
For true daytraders , I would only trade QQQ, SPY or DIA. HHH's(Internet Holders) many times have a 1/2 or 3/4 Bid-Ask spread, a little too wide for daytrading. All ETF's(Exchange Traded Funds) are exempt from the Plus tick rule for shorting them. However, HHH's and some of the more illiquid ETF's may be hard to borrow . Check with your desk or clearing firm before entering a short position in HHH. Since QQQ, SPY & DIA have a futures contract for ARB(Arbitrage), they will generally be more liquid than HHH. Gene Weissman Lieber & Weissman Sec., L.L.C.
My cousin works at the American Stock Exchange. His boss only trades the BBH and SMH. He makes a big money...BUT it is different being on the floor.
True. Don't compare being the "dealer" and trading upstairs , with no order flow. My suggestion is to trade "liquid" ETF's. Gene Weissman Lieber & Weissman Sec., L.L.C. gweissman@stocktrade.net
trader58, Being able to trade the BBH directly on the floor of the AMEX would be a huge advantage I would think. Does this person daytrade or position trade the BBH?
The specialist or market maker may daytrade, arb or postion trade BBH. If he purchases the BBH in size , he may sell a basket of stocks that make up the BBH and lock in the difference (arbitrage). The specialist or market maker may see the order flow or know a floor broker is holding a large order. This information can be important if you are daytrading. Stock specialists are usually well capitalized and may be part of a large trading group. Trading on the floor is not easy by any means. A specialist must make a market during declining markets or when there is no buyers or sellers and can get hurt badly during these times. Costs can be high for floor traders. A seat lease on the AMEX can cost over $10,000 per month plus other fees(to trade on an exchange floor you must purchase or lease a "seat"-exchange membership). Gene Weissman Managing Member Lieber & Weissman Sec., L.L.C. gweissman@stocktrade.net See my site at http://www.electronicdaytrader.com