ahhhh....that's a great heads up lescor. i was well aware of the MOC imbalances related to window dressing and the rebalancing of the russell indices going into the close. however, i didn't look for the closes to be so skewed for the large caps, because on a normal day, imbalances are normal for the large caps. they usually have little effect on the closing price. i'll pay more attention to this in the future.
Every day on the DJ news feed they list the stocks with either a buy or sell imbalance. Just how can this info be used to our advantage if any. Don, or anyone, I would appreciate any ideas you might have, even if you have gone over this, or just direct me to where an answer can be found. Thanks Don Keller
Since our traders become "surrogate specialists" in a handful of stocks, it is very helpful to know of how imbalances are handled by the market. If, for example, you were long 2,000 shares of one of your stocks, just prior to the publishing of the imbalances, then you could wait a minute or so to see what was being shown...this decision could make a big difference each day. We also offer a couple of MOC strategies when we see imbalances on a daily basis. Don
1 fill here +.37. don do you guys ever use the spy,dia,qqq for open only orders.i have been testing them.it looks like it would work to me.
No, this strategy only works for listed stocks...the indexes (indices) reflect the whole market and won't have the excess movement needed to make money. Of course if the markets were to quickly reverse in the morning, then it would seem that the strategy would work, but that's a pretty big "if."..... Don
-9, +14, -3, -3, -27. these include commissions, not a good morning -$115 on 500 shares a piece. my exits weren't the problem. sure they could've been better on a couple (when can't they be) - but, if i had waited on the others, they would've gone against me more. if a stock goes against you immediately, do usually just get out. yes, i know there are other factors - the tape, futures, etc. but, in general, do you usually just get right out? and yes don, i know you go over exit strategies in your advanced class, but i can't get in there.
After you're in the trade, and we "know" our stock pretty well, we either put in a "winning exit" order, or watch the tape...The "shakeout" happens so often (at least in my stocks) that I hold my losers for a few minutes unless the tape is so obvious (opening at 40.00, offered at 40.00 and printing lower. Don't be swayed by any "big offers" though, since we generally see those big offers get traded, and the stock go up. So, I do hold the losers for a bit, watch the tape as you said...and best of all, get to know how the stocks trade in particular. Don
here's an example from today. JPM - opened at 30.71, and i was filled long. post opening, it went 4500 @ 30.70 x 30.72 @ 62,900 offer of 62,900 stepped down to 30.71 i market out when bid at 30.71 gets taken out, filled at 30.65. 59,000 steps down to 30.66, then to 30.65, then 57,000 at 30.51. trades in the 30.40's. at this point you have a loss of 30 cents. about 10 minutes later, at 9:46, it prints 30.80 for a small profit, scratch tade. but i think that is just because of the market, which was surging. what do you think you would you have done?
It traded much like my Citigroup did today...and I since the market looked pretty strong around 9:45 I held on to make a small profit (coulda been bigger). It's seems you're looking at your time and sales well, and that you held off for the shake out, another good thing. We had "premium" most of the early monrning in the S&P's which makes it easier to "hold on." Keep at it, you seem to understand all this pretty well... Don