there is one item that you are leaving out about a bear raid.... the ability to borrow stock. if stock loan is not available, couldn't the shortee be squeezed just as badly when they are forced to deliver?
oh yes there is. it is a fact that on average stock prices drop faster than they recover. see my point about 10% movers above on this thread. you are correct about the uptick rule having been conceived to prevent "bear raids", but it is my understanding that the primary reason for a bear raid was the instant profit of being able to cover at lower prices. the following google search: http://www.google.com/search?hl=en&q=bear+raid+glossary reveals that: - jaan
hi def, i'm not quite sure what you're asking. if the loan is not available, the bear raid would not be possible in the first place i guess. if you're pointing out that bear raids don't work 100% of the time, then i agree of course. however, i believe that on average they do work. and "on average" is good enough for raiders, isn't it. - jaan
"There is no fact about the recovery process" (<b> of an attempted bear raid</b>) Prices may recover more slowly in general, but I'm talking about this evil bear raid process. You can't assume <i>every</i> price drop is a bear raid.
i don't think anything i've said above relied on such assumption. i just believe bear raids were (and still are?) used to exploit this general tendency, that's all. - jaan
AAAintheBeltway: I want to look into trading globex, eurex and currencies. I am currently with Underground Traders using RealTick which gives access to ARCA. I get speedy fills but I also trade thru Fidelity and their fills can be almost as fast as ARCA. I don't trade market, usually limit. Can I get the above 3 on my RealTick stochastics, moving averages charts? Are they like the small caps in volume, general chartability? Can I chart them on BigCharts? I like to do a 10 year chart to take a gander at best long-term gainers like Intel (1700%) gain in the NYSE and DELL in the NASDAQ (16000% to March, now 8000%). Even though I'm a day trader, back in good, safe cash at the end of the day! honus
honus, globex and eurex are electronic markets. the main product traded on globex is the e-mini stock indexes. you can get the cash value for the ndx and spx on realtick and you can get the futures if you are permissioned for it. I believe you can get fx and currency futures on realtick as well but you have to be permissioned for it. IB offers a cheap platform for tradinfgf these products, as do other brokers. do your research and due diligence before getting involved , as they are very different from trading stocks.
http://www.financetech.com/story/ourTopNews/WST20020131S0008 Interesting excerpt ...Speaking at a recent SuperMontage information forum held in New York City, Dean Furbush, executive vice president of transaction services at Nasdaq, emphasized that Nasdaq is trying to reel in order flow to its exchange via the launch of SuperMontage. "This is a competitive offering. Nasdaq is not the only place people can go, and we realize that we have to build a system that attracts people," he said. "The whole idea of this is (our) hope that we can centralize liquidity." But one project that could throw a monkey wrench into Nasdaq's liquidity plan is the development of a so-called alternative display facility (ADF). As a condition of granting Nasdaq its desired status as a full-fledged exchange, the Securities and Exchange Commission has essentially required the National Association of Securities Dealers -- Nasdaq's regulator and former parent -- to build an alternative facility, through which market makers and ECNs can display their quotes and post their trades...
As of March 1st 2002, Island ECN has lowered its fees by 47% to 0.0019 per share, no per order, no cancellation fees. Because of its lower fees and fast executions the largest ECN Island, will remain a better choice for MMs and traders than SSOES imo. The rebate of $0.0011 per share for adding liquidity makes Island even more attractive. Island new fee Schedule Fohat