GE will probably trade 75M+ shares today. I find it hard to believe that on the open it doesn't bounce from -$4 or maybe much lower on the opening print as opened by Jimmy. After that, - $4.50 seems likely by EOD. Taking GE off OO is a mistake imo. nitro
No fills today. I can hear the brokers phones ringing off the hook today "There called blue chips for a reason they never go down!" or "Stocks like GE do great during recessions...can i put you in for 100,000 shares?" even better "Your buying the bottom!"
4 long, 1 win and a win, 1 scratch and a small loss on small positions, +668, 3200 shares. I pulled GE, I'm not a bullrider; that's just "how I roll" -- very slowly in a POS jalopy Have a good weekend all. Enjoy the Masters.
"Yes, we liked it at $36, and now we LOVE it at $33, so we recommend you buy more" LOL No fills today...I also pulled GE because I am a chicken :eek: But seriously, I find news/earnings stocks to be a 50/50 shot for OPG so I stay away. Good weekend to all
Based on your postings, you guys seem to have a pretty good handle on Open-Only orders. I want to make sure I understand the stategy: 1. With a flat, or relatively "calm" opening, we are trading on the fact that while the stock may open away from where it is expected to (based on fair value), within the first few minutes of the market opening it will correct itself. 2. With more dramatic openings, say +100 points or more, we are trading on a retracement. What am I missing. I do okay with my opens, but it seems to be a crap shoot sometimes. When futures are trading down sharply, it seems counterintuitive to put in a tight buy envelope and no sells - unless we are counting on a retracement. (Of course, that has been a profitable strategy in the past - do the opposite of what makes sense to me!) Thanks for your thoughts! Good trading to all of you!
This strategy was originally devised as a way for you to trade exactly like the specialist/market maker. The specialist is finding a balance point to open the stock. When that balance point is beyond the "fair" value, as compared to the balance between the S&P futures and the S&P cash, you will quite often get a "sling" shot while the S&P futures and cash get back into their normal prem difference. This was originally devised to just trade like a specialist. Take the same side as the specialist on the open and feed out your position as it goes your way for the first few minutes after the open. I think where a lot of people go wrong is their expectations. This is a scalp trade for a couple of pennies for a few minutes. You can branch off from that point and try to capture larger moves, but at that point you have moved from your original objectives to managing a swing trade. Looking at it over the course of time, the results are very similar to almost all "scalp" trading. You have a lot of small wins and losses and maybe once each month (or less) the market opens at an extreme and just completely reverses, so fast that your "feel" tells you to "stay with it". Those are the days where you make your huge profits. Of course, there are some days during the year where the market opens at an extreme and just keeps going relentlessly and you get stuck trading your way out of a big, fat mess. For me, this strategy wound up taking up too much of my valuable time during the first 15 minutes of trading. I determined, that for me, I was not paying myself enough during this time, using the OOS, to do it on a daily basis. I have other strategies that are working better for me during the first 30 minutes of trading, so I try to "cherry pick" the times when I will do the OOS. It is a good strategy for those who trade at a "prop" firm and need to do their 200k-400k shares each month to pay for desk fees, etc. You will do a lot of volume. You will just need to determine for yourself if you are getting paid properly for your time and trading.