I am wondering if anyone can scalp today... In my stocks, especially JPM, the tape has become absolutely unreadable, blocks being constantly posted and taken. Kinda becoming an IBM tape. Stared since the opening and could not find any entry with an edge... Would be interested in knowing how other NYSE big cap scalpers approach this kind of day.... Maybe taking a couple days off was the best option this 4W week... Chris
i trade the nyse and i read the tape. i also use charts and try to pick my spots. i don't just trade big cap's and will only trade them if i see a certain reason too. i know it can be done but i see people having trouble too. the tape tells you alot but use all the tools like the specialist book and charts. i do notice specialist scaring people out alot then making the move. sometimes the best trade is the hardest one to make.
The witching Fridays are always tough. The price action completely changes so the trading logic you normally use does not apply. IMO it's best to sit on the sidelines if your a nyse scalper. Scalp
Guys, NYSE scalping in general has been getting worse and worse for years. I started off doing scalping and slowly mutated into a combination of trends/pullbacks/reversals & tape reading. I still scalp but from what I have seen is that it's a dying style. It's too obvious so too many monkeys try doing it. These idiots constantly start limiting out lower and lower completely destroying any move. On average you end up with 10 cent move upside and a 15 cent downside. Thats a losing equation. As for the last few weeks, it's almost near impossible to tell what the hell is going on. It's just dead. I did not even come in today because I knew it would be a waste of time. I think the way to go is to catch one good trade and go home. If you can clip 300-500 bucks in one day just go home. Or stay and trade 100 share lots just for the experience. I can barely tape read anything anymore unless there is some serious action (like FSH & AOT on Wed). What I am seeing is that dead ranges are being kept for large blocks to get exchanged. Thats where the volume is coming from, it's just large blocks. I also think specialists are painting the tape to get more day traders in and to keep volumes up. I cant even find enough trades to get over 20k shares a day anymore. I am being more selective but it's truly gotten dead. Definitely time for a part time job.
Much option players in this one, makes tape reading difficult, akin to what happens since yesterday in JPM. Chris
Did an interview with Vadym Graifer, who has done more than one article/discussion about scalping as a viable concept of trading. If you are interested in listening to that as well as some of his trading background, feel free to at: http://www.gstcapital.com/roundtable.html Next week I have Cody Willard on tap, who will be discussing among other things, the Telecom industry. Chris