Great S&P Adds/Take outs...

Discussion in 'Trading' started by Don Bright, Jul 19, 2002.

  1. I bought RD and UN moc as well. Lets hope they trade up some overseas on monday.
    #11     Jul 20, 2002
  2. mrktwiz



    #12     Jul 20, 2002
  3. Been stuck in the adirondacks. Only intermittant phone access. I wouldn't miss sp day though. Bought a few k more thv though. I heard from two really great sources and both said that they're absolutely blowing away all estimates. They'll have an unreal third quarter, even though it's only 3 weeks in. I'll post all the details in the room on monday.
    #13     Jul 20, 2002
  4. We want to be ahead of the "crowd"...many put in afterwards....

    Closing trades sometimes start at 3:40...depending on how the stock is acting.

    #14     Jul 20, 2002
  5. dear jolly jack off

    i tripled my account frinday with the s&p shuffle. rd had an 80 million share sell imbalance with an average daily volume of 3-4 million shares. it doesnt take a genius to identify the opportunity it may take common sense which you have clearly shown some people lack. instead of taking cheap shots maybe you should take notes.
    #15     Jul 20, 2002
  6. Babak


    Please excuse my ignorance but am I to understand that when a large order imbalance (much more buys than sells, for example) takes place, the specialist is obligated to take the price higher and higher...until s/he finds a price at which there are an equal number of buyers and sellers?

    Is this a correct take on it? If so, why only take advantage of the artificial ramp up and not the subsequent ramp down?

    By that I mean selling short MOC with the intent of buying to close the position the next day as the imbalance is no longer present (which would cause the price to revert back to its pre ramp range)?

    Wouldn't you be giving up the other half of the sandwich by ignoring the last trading strategy?
    #16     Jul 20, 2002
  7. Dustin


    Obviously you are adding risk to the trade by holding overnight, but you could actually do both methods in one trade. Example:

    RD had a sell imbalance. You put in a MOC buy for 2000 shares. A few mins before the close you short 1000. In this case you would make $2 on the 1000 shares, and be long overnight an additional 1000 for a possible gap. Or, you could sell the additional shares on the ECN's aftermarket.

    I'm not sure this is a great strategy, but something to think about.
    #17     Jul 20, 2002
  8. nylord1


    im learning this strategy myself right now, and it seems there are a lot of plays on of the guys in my firm did exactly as don did and also went short and long a little extra for over the weekend. He ended up the day close to 400 k. No BS. Nice way to start the weekend.
    #18     Jul 20, 2002
  9. nylord1


    Don, What if a buy imbalance turned into a sell imbalance at 350? Lets say you had a sell MOC because the first indication was long. Could you basically negate the first moc by putting in an offsetting moc after the second indication comes out as a sell ? Or would this be a case of sort of painting the tape and not be allowed?
    #19     Jul 20, 2002
  10. To all: the stategy is basic, we've been doing this for years, many like to sell additional shares and buy them back after hours (thus not an "overnight"). Just another arrow in the quiver.

    Until next time....

    #20     Jul 22, 2002