might work well most of the time, but what about that time when you already whacked your lot and that big bs offer you put up gets lifted in one print and stock starts flying because the seller was told by speciallist to take a bathroom break? thankx but i'll take the ss rule anyday. i was excited for the pilot program before it came out, but its complete bs with one man still controlling the show.
Yeah you do run the risk of getting your foffer lifted, but you have to use good judgement when doing that, you have to fully understand there is a seller in there that wants to dump stock..this is done by carefully reading the tape...as livingston1 said look at where the specialist is filling orders in the book at...is there price imporvement or no? And I'm not referring to 300 share orders in the book think more like 1-2k size and up, basically meaningfull size. I personally use a mix of technicals and reading the tape to give me the best indication as to when to get into a position. Basically I think with the SHO programs you better know what is really really going on in that stock before you jump in. You're exposing yourself to alot more risk if you are scanning for bid/offers and see an offer pop up in an SHO stock and try to go after it right away like you would with a short seller stepping down a penny behind because you can't define your risk like with the SS up tick rule. I'm not taking size unless I know what's going on in the stock, if you do that's just reckelss.