Illiquid small caps and correlation to commodity prices

Discussion in 'Trading' started by apo99, May 15, 2017.

  1. apo99

    apo99

    Illiquid small caps and correlation to commodity prices


    Hey guys

    Just throwing this out there,

    I have been trying something for a while now but have not been able to get any traction. I have been trading illiquid small cap stocks for a few years now and have a good feel for them, and have noticed certain things. They have a delayed reaction to commodity price changes, when dealing with mining “gold, silver, copper, oil & gaz stocks. Many times during the overnight session crude and gold will move 2%+ and these stocks will remain unchanged at the open or even open lower, mostly because they are so illiquid that a 1000 shares can significantly move the share price. I look for these types of stocks at the open and take a position if they are unchanged or in the red. I also do the same thing intra day when certain economic news comes out and affects the price of gold and oil almost immediately. Trying to do this with larger mining and energy stocks is almost impossible since there are many algos who do is 10000x quicker than any person when there is a significant change in their commodity price.


    This was just a small idea I had a while ago, that I have been trying out.

    Has anyone successfully traded something like this or something similar? I believe that many illiquid stocks lag behind everyone else and have offer a real opportunity for a small trader to profit.


    Anyways if anyone has some ideas or anything they want to share it would be appreciated.


    Apo
     
    R1234, murray t turtle and TraDaToR like this.
  2. %%
    A99;
    Sounds like you may find some great small cap patterns; IBD certainly has + does.NOT that small caps + oil have much of a relationship @ all; oil does not have the earnings,most stocks have earnings.................................................................................
     
  3. apo99

    apo99

    yea IBD always has some cool info
     
    murray t turtle likes this.