interpreting block trades

Discussion in 'Trading' started by roger2, Aug 24, 2001.

  1. ktm


    It looked strong at the open. I finally got short at 39 with a 40.01 stop. I'll look for 35 or lower to cover, 1:4 for this one. I wouldn't worry about the fundamentals. Remember why you're trading it. I've owned many great companies that have had their stocks go straight down.

    I'm probably a bit early too but I like erring on the early side of a short in this market. Hang in there.
    #11     Aug 28, 2001
  2. roger2


    looks like INTU just got another pop from somewhere...maybe it's the WSJ Online article ??? (dated Aug27, but i didn't see it on yahoo 'til this morning)

    solid companies with positive sentiment can be a real bummer!!!
    #12     Aug 28, 2001
  3. roger2


    ktm, great timing on your part...
    #13     Aug 28, 2001
  4. ktm


    We'll see.

    My timing on MOVI was bad but I had enough $$$ to avg up and hang on. That continues to sell off nicely today.

    INTU's volume is decreasing as it goes up. I feel good about getting in at 39. The consumer confidence number missing badly has helped the shorts. Picking up some E-mini's (SP) short after that announcement wouldn't have been a bad play either.
    #14     Aug 28, 2001
  5. BigWave


    Just wondering.... where do you see a short in this? I know anything can drop at this point but I see no reason to choose INTU? Today as everyday, most all stocks are simply following the tides.

    A/D - Neutral
    MACD - (+)
    overbought - yes, but hasn't rolled over yet
    analysts push - recent upgrades
    #15     Aug 28, 2001
  6. ktm



    The primary reason that I'm shorting INTU and others is that the rallies are not sustained or following through. The stocks run for a few days...then the interest peters out and they drop like stones. I got tired of going long trying to "get the meat of the move" when the move gets cut short by another bad economic report.

    INTU ran up about 30% in a few days and near the top, the volume decreased and now it's faltering. Sure it helps to be following the market but most stocks I've seen that have run up that much pull back at least at least 50% (of the run) when the volume starts to dry.

    If an analyst is pushing, I'm shorting even more...he and I are likely shorting together.

    #16     Aug 28, 2001
  7. ktm



    MOVI is in the low 24's and INTU is getting near 36. I have a trailing stop at 38 to cover INTU and a sell order at 35.01. I see no support for MOVI and would like to cover at 21 or by the end of the week...whichever comes first.

    You should be feeling better about INTU today?
    #17     Aug 29, 2001
  8. Babak


    Getting back to the original intent of this thread: block trades:

    I read the section in "Market Makers Edge". I didn't see anything that would give you an edge on interpreting block trades. Basically the author explains thoroughly the different situations that can arise to create a block trade and what the market makers role is in each one.
    #18     Aug 29, 2001
  9. roger2


    Babak - thanks for the synopsis. i definitely need to get some of the better books, when i started doing this i just grabbed a few off the shelf at Borders bookstore (you know, the rookie books with colorful jackets) - which books do you think are usefull?


    i'll address how i feel about INTU, but got to be feeling pretty good yourself - shorting .17 from the top and catching a 2 point slide (almost) in about 2 1/2 hours!!!

    what will INTU do tomorrow?

    MY OBSERVATIONS: small range today; GREATER volume today vs yesterday incl. more block volume/percentage (967K/.31 today vs 600K/.22 yesterday); moved down relative to comp for last 1/2 hr ; 36 was obvious support today

    MY GUESS: something other than repeat of today - either reversal or rock city (as in 'drops like a ...')

    Any thoughts? (from anyone)

    Also, did you bail on MOVI seeing that it and BBI & HLYW all moved up against comp today?

    I am now going to (have a Corona and) pore over today's block trades and see if there are any clues there. If i see anything interesting i'll post again tonight.
    #19     Aug 29, 2001
  10. Babak


    check out the book section of this site. There are some great ones cited.

    It really depends where you are in your learning curve. IMHO it is way more important to know what you don't know, than to know what you do know.

    did that come out right? ;)

    Also search the site for previous threads that discussed books that people recommend.

    Wish you the best!
    #20     Aug 29, 2001