well, they do have to make a market, a 0.01 would technically qualify them for providing liquidity.? Arca is the same with .06 bids ever since they merged/took over the pacific exchange. Josh
Thanks Josh, you are the winner. You will also notice they are on the offer at $2000 in those same stocks. It qualifies them for SOES Market Maker status. So much for the silly theories about trolling for random sellers.
cool. thx for the tip. apparently they are not that stupid!! the rule makes no sense since LSPD is not one firm, but rather a bunch of people using an ECN...but then again this is NASD......where few things make sense....
Things make sense perfectly if you just keep in mind that the securities markets are setup to do one thing: Nickle and dime individuals to death feeding corrupt institutions. You can't even call the securities mafia "criminals", because they are powerful enough to make their laws to fit them, if I ever have the money/influence I will have the supreme court take a look into all the discrepancies and contradictions in all those "regulations". For example, the technique of busting trades due to unusual price action is illegal, since it comes down to taking an option from somebody without compensating them for it. As you can see, this practice also violates numerous "laws" regarding securities options in the US. Let me explain in the hope someone here will be bright enough to see through this one particular institutional scam: Let us say INTC is trading between 18 and 19 today. Chances are there is an order somewhere on ISLD or ARCA to sell 1000 shares at 22. Now let us assume for some reason the price of INTC starts increasing rapidly. When it hits 21, the aforementioned order at 22 might just happen to be the best offer. Someone (with sufficiently good connections to the ECN or NASD) will now take that offer. So far so good. What has that person received? 1000 shares of INTC at a price of $22 each you say? That is partially correct. But that person has also received a FREE OPTION to sell those same 1000 shares back to the original seller at 22 within the next 20 minutes. That is where the illegal portion is hidden from well-bribed legislators and judges. Just in case you have not figured out how to finish off the coup, I will spell it out for you: The person who bought the 1000 shares just has to wait a couple of minutes for one of two scenarios: 1. The price action turns out to be a spike and the price returns to levels below 20 shortly. In this case the buyer just calls ISLD or the NASD or whosever "jurisdiction" the trade lies in and has the trade busted, i.e. exercises the option he illegaly got from the original seller. Nobody wins, nobody loses (in THIS scenario). 2. INTC trades through 22 and closes at 24. In this case the buyer just does nothing, i.e. lets the illegally aquired option lapse and locks in a $2000 profit at the end of the day. The seller at 22 cannot have the trade busted, since the price has traded through his limit. You might say busting trades due to "erroneous data entry" is inevitable, but that in itself is bull: If I want to be a trader I should know the keys on my keyboard and a little bit about numbers. We all make mistakes, and if it is my typo, why should the NASD be responsible for it anyway? And even if you want to keep this mumbo-jumbo rule, it should not be implemented retroactively: The technology is there! If you want a price jump of 5% within 5 seconds to count as "unusual price action" indicative of "erroneous trades", NASD or ISLD (or both!!!) should cancel such trades BEFORE they are executed. What do we have computers for????? The way it is now it is clearly wrong and just a way to capitalize on the little guy who might not realize he has those poppycock rights or might not know how to exercise them or simply might not have access to a printer, fax machine, and all the necessary information within 20 minutes of the trade.
All you have to do is look at a chart of something like SUNW or CSCO with a charting package that will show you the "bad prints" on the bars - like QCharts. Funny how many "bad prints" are quickly followed by a reversal (at least short term) in the price of the stock.
Kilgore or Lobster..... By bad prints you mean out of the market fills? Let me get this straight: When there are a number of bad fills on a stock like SUNW, it often signals a reversal because this is where many believe it would reverse, and then decide to either break or not break the trade based on what happened??