This is correct. A specialist can not get long on an uptick or short on a downtick so a specialist can never, I repeat never take an offer or hit a bid.
What if the offer is bellow the last print? Can specialist take it then? For example Market 34.10 X 34.16 Someone takes the offer at 34.16, but then someone else offers shares at 34.14. Can specialist take the offer at 34.14, cause it's technically a downtick from the previous 34.16 print?
Yes, in that situation he could take the offer although that would be a cardinal sin in daytrading to ever buy stock offered on a minus.
Are you joking? I hope you are cause if you believe that they are actual enforced rules that suggest anything of the sort, you have no place advising anyone on trading.
This is 100% fact. And yes it is enforced by the floor governors. If you suspect that the specialist traded ahead of you on an uptick you can call down and get a time and sales print and they can be fined very heavily. This is very very heavily enforced.
LOL been done many many many times. If you had ever went through the process of trying to enforce any of these rules because you felt they were violated you would know that no one truly cares. There are many fine lines between abuse and simply breaking the rule. The specialist DOES get short on a downtick if he needs toand he DOES get long on an uptick if he needs to. Just like they front run and use inside information. The rule would need to be truly abused for serious enforcement to occur, like in the case of the GM specialist. My real point is that you cannot say that it was not the specialist who just lifted that offer or the bid just because of these "rules".
So on an NYSE stock,if you see stock being offered on a minus tick,should you not get long or cover a short?Also,if you see stock being bid for on an uptick,should you not short or sell your long?
That is correct. The buyer or seller is basically desperate to get stock at this point and is trying to keep the specialist out by trading ahead of him. It's usually a sign that someone has a lot of stock to buy or sell. You should never guy stock on a minus or sell stock when it's being bid on an uptick. NEVER!
Bids on the plus/offers on the minus are more than a desperate buyer or seller. It also means the specialist does not want the stock and is standing aside. That's a strong signal coming from him. Of course, he knows we know this, so he'll also do it just to get daytraders to unload their position (right into his hands). As far as double prints: 1. could be multiple buyers/sellers sharing in the print as mentioned earlier, or... 2. He can't sell a downtick (or buy on uptick) by himself, but he is allowed to match the last print and participate. (shows as a double print) I agree, they abuse the system to the point where the *rules* are nearly immaterial, but with diligence you CAN find a reasonably honest specialist. Then again, some of them or so unbelievably crooked it's ridiculous.
i haven't read this thread so forgive me if answered, but double prints mean a "married" or "go along order." say an institution gives a "go along buy order" for 10k shares. there is 800 on the offer, you go in to buy 800, but you only get 400, splitting it with the go along order. correct me if i'm wrong, but i believe this is correct.