where did the large orders go?

I prefer nasdaq issues for the simple reason that it is about as straight-shooting as a market can get in these times, pure open auction. The specialist system is, well, ridiculous. It has been since the dawn of decent electronic auction markets, but the NYSE continues to make up B.S. excuses why the archaic den of thieves needs to stay open. I know this comment may upset some who rely on the specialists to guide them during the day for their trades, but honestly this is strategy is more of a "trick" than a trade. All of this being said, I will still work an order on the NYSE issues, but I try to route to ECN's whenever possible to punish those specialist firms in my own tiny way .

There are some fantastic nasdaq stocks to trade, just check out QLGC for one. This is a momentum favorite that has survived for years and still is a real mover on volume. In my opinion it is the "model" stock for short term trading today, and I think it's current volume, beta, ATR, etc... should be noted and then used as criteria to find others. It will not always be this volatile or liquid, and will probably go the way of other stocks... eventually to 0 or bought out by someone. However there will be others to take it's place.

Goodluck,

 

I completely agree with the lack of volatility that has been in place for some time now, especially when trading NYSE names. Trying to scalp these names and come out on top AFTER commissions has been brutal, and of course the "open" book is not the kind of edge that you can rely upon.

Thanks to everyone that took time out to respond to this thread. I really enjoyed the forum.

 

If the big guys are splitting their orders up, how can we take advantage of this?

For expample, If instead of them buying 50k shares in say two 25k transactions during morning trading, they are buying 50k shares via fitfty 1k transactions over a 2 hour period.

I notice alot of stocks that will slowly drift up emotionessly all day. (or vice versa downdward) Could it be that this is the result of the above activitiy. In past years stocks would move in a much more jagged fashion. One could trade these jagged moves all day long. Often there would be 3 or 4 decent entries and exits in a stock. This doesnt happen anymore. The stocks now move in a very smooth and orderly way.

One strategy i can see as plausible would be to buy into a stock that you see doing this slow drift up. You assume that the small orders will keep rolling in. I myself find it hard to trade this way. Because many times the drift up seems random, capable of reversing at anytime. Or sometimes the stock will start moving sideways (with a 5-10 cent range ) for sometimes hours before starting its move up again. I can't sense any momentum.

And whats this phenomena that all stocks completely stop moving if futures arn't moving. Its as if no one on the entire planet is entering an order of any size that can drop a stock 10 cents or more if futures arn't moving.

 

I agree with your post on the change in how stocks are moving. I too find it difficult to trade because I can't find or sense the momentum anymore. I was able to tell when momentum was coming in even after stocks slowed down from when they made crazy momentum moves all day to just making a few moves a day. For the most part now though it seems those moves a few times a day no longer happening and like you said it a stock might eventually be up on the day or 30 minutes later but I have a hard time telling what it is doing when I am in it. I might get in, it goes up a few cents a few pennies at a time, but no real push to it. So in my mind it seems to be a 50/50 chance of going up or down. What can be tough is say you sit in it several minutes with this slow creep and then suddening the bid drops which takes away most of that slow creep up. It turns into a balancing act of when to sit in the trade long enough and when to take off your money before the big drop. Also for me trading larger size is more difficult now because everything seems a lot less liquid so I am trading small positions.

On what changes to make. Maybe widen the time frame out, less shares, larger stop loss, trade off a chart pattern which takes some time to develop rather then looking for the quick profits that scalpers use to love to trade. Many nasdaq stocks have had some great moves lately too. Also maybe use a different form of tape reading skills using a chart rather then reading the specialist for block trades, double prints, ect. It seems the volume is still there to push a stock up but it is not as easy to see as it was when they just did 2 block trades. The vol shoulds still show up on a chart though. I am just thinking out loud here though.

 

I don't trade many stocks and am not really a day trader but when I don't see anything that really interests me or when i am in a trade that is slow I look at a list of high beta stocks and see if there are any decent set ups. QLGC has been my biggest money maker stock this year, followed closely by NFLX and Sina.

 

It's called decimals. From 5k-10k up markets in teenies to 100 shares in decimals.

 

there is just no market emotion.. no one's greedy or scared enough to trade larger blocks. no one's desperate to miss a train or cut a huge position. they're sitting steady adding or subracting on smaller trades. no fear or greed. like the jobs market, playing tight. market is looking for something to trade on, but it isn't there, yet.