Anybody trade it last few sessions? Hard to figure out, thought it would be similar to the way C traded on their investment from Dubai ( here it was Citadel). At least thought would have some lift today from U.S. Government subprime bailout prospects. Any thoughts?
Yeah I traded it. Scalping nickels, basically. Didn't even know that they had news. I learned that one of the things many people like to say on the internet, that you can't short stocks under $5, is flat out false.
The ETFC deal with Citadel is good news only for Citadel - not for ETFC or it's shareholders. The stocks performance reflects this.
I was told this at my old prop firm and never verified it independently but I have all reason to believe they were credible when they told me that you could not trade stocks under $5 with a margin account, and since all prop traders use margin accounts, it's not available for prop trading. Yeah those large bids on the way down were just obviously going to get taken out... i scalped 4 pennies and 1 penny on 3k, had i been watching it longer, could have tkaen more. I guess a stock like ETFC that has SO much size should be treated like a stock with a multi point range that moves in .10s, so it's like trading before decimilzation.. only in modern electronic markets.
Just short the liquidity people are playing off when it's not in a range and there's momentum and when you start getting upticks if you're short or dwonticks if youre long and have a price level get chewn through or momentum slow down get out.