Don's Openings Pt. 2

That is a gut feel issue. I look at ECN activity, where is the stock bid and offered and is there size? Today on KSS I actually moved my bid way down into the area where it was trading premarket. I ended up cancelling because I got enough fills and had all I could handle, and it was still not open.

The reason I moved my bid down was because of what happened in SGP a couple of weeks ago. It was getting slammed in premarket, down about 3%. INCA was offering 8500 shares at 33. That is pretty decent size for pre market. I put in the normal bid and offer as dictated by the system. Specialist opens stock at 33.75 and it goes straight down from there. Lost 75 cents. If I had put bid down near that pre market offer, I get no trade.

So, I look at news as creating opportunity, but you have to guage what it's doing to the stock minute by minute.

 

2 losers 1 winner dead flat after commissions.

 

I'd appreciate any discussion on how to read these. I try to (or am forced to) play these sometimes, and they seem to be really inconsistent. Sometimes, with a big sell imbalance for example, the first indication will appear to be too high, and then come down a couple times before it opens. Other times, the first indication is way too low, and comes up before it opens, which seems more intuitive if the purpose is to try to attract buyers.

Do different specialists use different tactics, or are they really getting such grossly conflicting information from the crowd? Sometimes, it seems that when he's almost ready to print an opening, someone shows up with another zillion shares to sell. Does this really happen?

 

don,
you can do buy sells in the same stock but you can't add numerous markets that would violate the margin with IB.

 

I had one openining fill yesterday and it was HD. Shorted it 49.24 covered at 49.09. Whoopie.

 

Thanks, Def. So you can put in buys and sells on the same stock, and as many stocks as will fit in under the margin rules . That's good, I hope the strategy continues to work as well as it has.

 

Had students here this morning (to authenticate the trades.. Only filled on 2, made money on 2 gross = $400 (could've made more, but had to get ready to talk to the students)....

 

2 fills on 12 stocks
2 wins, (1 long 1 short)

+12 and +36 net, total 48 cents after commission

 

just got long 1 stock this morning...........took forever to open
made .19 on it.

Robert

 

Okey, here are the trades of today:

14 orders, 2 fills, 2 winners on 17 and 19 cents respectively, one bank and one pharmac.