Interpret this for me

Discussion in 'Trading' started by javaboy, Apr 6, 2004.

  1. javaboy


    Boys and girls.

    Check out NTY yesterday. Doing its usual trading, sorta going up and down lazily w/ the spoos and then at 14:15 2k shares show up on the ask (usually only couple hundred shares at a time) at a price of $37.00.

    Anyway, short story is that nty doesnt budge fm $36.98-37.00 for hour and 45 minutes until the close. A total of some 160k shares go off at the same price in that time, a huge ammount for this stock that normally trades 2-300k shares/day.

    In the meantime right at 14:15, sps go up 4 1/2- 5pts and stay up there for the rest of the day, which would normally create buying pressure in nty.

    My interpretation: a shitload of selling going on w/ institutional order at 37 bucks. But why wouldnt specialist let the stock go up and make seller happy at getting a higher price? Is there something I am missing?

    Btw, waited all day for seller to go away to catch updraft, never happened, nty closed at $37.


  2. actually, there was a load of buying going on too :).. someone wanted to sell at 37 schmackers and until their order was traded through the sucker didnt go up.. its not a conspiracy (usually) :)..

  3. javaboy


    So qtrade, what I think you are saying is that I interpreted what was going on correctly. I neglected to say that there really was no size on the bid, so I am thinking the institutional side was the seller.

    Still makes me wonder why w/ the buying pressure caused by the spoos going up that the price didnt go up either. Obviously a lot of little guys were looking for the pop to the upside and nty could have gone up. What good would it be for the institution/specialist to stay at $37 even?

    And yup, I figured at the high volume of trades going off, that there wasnt anything too conspiratorial....

  4. Mecro


    Flat buying and selling like that is usually how the specialists established long term positions.
  5. there was demand at 37.. if he/she were to raise their offer to 37.25 or 37.50, would there still be the same demand? sometimes you have to feed the ducks when they are quacking..

  6. javaboy


    Thx qtrade.

    Jaust after I posted, I came to the same conclusion.