NYSE Openbook Question

Discussion in 'Order Execution' started by tito, Jul 3, 2006.

  1. tito


    Is there any info during pre-market in the NYSE Openbook that will give a hint as to whether a stock is going to open up or down from the previous day's close?
    Thanks in advance.
  2. rjv27


    Nothing is 100%, 1 thing you can look for are market shorts building up in the open book. But to take advantage of this you will need to have a conversion or another product that will allow you to get short on the opening print.
  3. Don't use the NYOB pre-market, you'll likely be looking at stale quotes. The L2/ECN markets are actually trading.

  4. tito


    Thanks for your replies, rjv & Don.

    Don - With regards to pre-market ECN and Level II action, what "hints" do you look for in connection to a stock's opening?
  5. Normally just price and volume action, large bids or offers at prices away from the previous day's closing price.

    I generally follow up any disparities with a check for news / upgrades/downgrades / dividends, etc. This helps with opening pricing on my part.

  6. Yea - don't even bother with the NYOB pre-market.

    The best way to get a feel is to bid or offer 100-200 shares on arca/island and see how quickly you hit/paid.

    If you're wrong, you can get out easily at the open and, if right, you're in good stead to build a position at a good price (since the high or low of the day is contained within the opening range 18-21% of the time).