Thank God For TA.....I Just Bought More At $30 on the way down from $34.
That's another 1000 more. Come get me. Filled yesterday from being open last week. How do I feel? Just fine, thanks.
I've been meaning to comment on what Ken shared recently...
<<Clearly, we have lost momentum for the moment, and until the catalyst or a resumption of that momentum appears, the above is likely to happen. The reference to the current no mans land, I do not believe nextel will remain in the 30 to 34 channel for very long, it will either drop back to 28 or it will make the move to 36.>>
No offense Ken, but you know the game. IMOHO the vast majority of people that rely on TA have committed themselves to "no mans land". It very unfortunate, but traders need to make a living or at least they have the right to try to make a living.
Here's another one of my long-winded industry-related installments about trading and market structure for people to learn from - take this with a grain of salt as, after all, this IS coming from a guy who missed moving his clock forward on daylight savings - see my passion story on Palm Sunday. Well here goes....
Those of you who have followed this thread know I have been in the trading industry on the professional side of the fence for some time - about 17 years. I work, talk to, commiserate with traders. It's not an easy game. You have to obtain "orderflow" - that holy grail of electronic messages from the masses who wish to buy and sell just when they think its appropriate to buy/sell. As current and in one case - former - executive/partner in a professional trading firm...obtaining these messages is what I have been known to be very good at doing for a living. I handshake with traders who on a daily basis take the opposite sides of these trades.
Some or our recent successes: we did 24% of of the most active stock on the NYSE 3+ weeks ago (e-mail me for the symbol) when we did over 8000 trades and close to 2mm shares one day. Or last week when we took down gobs of another stock when the stock was down 46+%, doing another 20% of the National Market System's trades - from 8-10+% of the total share volume.
How do we do it? With automation. On the NYSE they may have 3-5 clerks assisting two specialists and they are still unable to keep up. We let the machines to all the matching, displaying, etc. And we guarantee instant exections on quotes from the NYSE that are more and
more frequently delayed and manytimes out of date.
Not many people understand that the NYSE is NOT automated when it comes to excuting orders. This is the best kept secret in the securities business. There is more money made by specialists and brokers on the NYSE than at anytime in history. All because of their resistance to automation. Grasso can jump up and down all he wants but the fact remains - to keep the brokers in the loop he resists any and all attempts at electronic access and matching - ie. order meets order and fills without human intervention. The SEC knows this all too well. The Justice Dept and the SEC brought the case against all those NYSE brokers - NOT the NYSE!! This is only the tip of the iceberg IMHO.
On the NYSE each order has to be quoted, priced and executed manually by invoking manual hits to an electronic display screen. The NYSE is now in the minority of exchanges when it comes to dealing with the Intermarket Trading System (ITS) - they still treat it as a bulletin board - taking as long as 2-3 minutes to respond to a trade commitment. On top of this, by simple administrative degree - announced last summer - the NYSE totally ignors ALL quality and
service pricing questions during the first 60 seconds after orders are received into the NYSE "cue". This "cue" can be very long indeed as many professional traders know all too well. We were trying to buy
50,000 shares of this stock in the frenzy of the post split day a full 1/2 point above the market and the NYSE specialist simply "timed our order on DOT - the Designated Order Turnaround system
for electronically delivered trades.
What does this mean with Nextel? Not much. The NASD is still in the dark ages when it comes to service on limit orders. In the listed markets, limit orders have to be filled based on rigid rules
of protocol and procedure that protect orders from prints that take place on the NYSE. On NASDAQ limit orders are still orphans. MM's display them and that's about all - at least the SEC requires that MMs not trade ahead of these orders as MMs had done for many years. Still, this is like giving away a free put/call to the professional trader. The option isn't worth much if the stock doesn't move that much - if it does move, the limit order can be an asset.
Today, if you want service on limit orders the only place you can go for a relative reference is on the Chicago Stock Exchange's OTC UTP program where they trade some 500+ of of the most liquid NASD issues. This is a little know secret in the National Market System which the NASD has been trying to muzzle for years. Why did the NASD merge with the AMEX?? Because they, in part, want to have 1) a venue to trade electronic options when and if that happens; and 2) they know that Chicago has a potentially more powerful mix with the differentiated tape print on NASD trades - merging with AMEX gives the NASD its own differentiated tape print.
Some reading this may know what I'm referring to. Others are only confused. All I know is, Nextel at $30 and below is a great buy. Where do we trade for a living? In "that wonderful town...my kind of town" and Nextel is my kind of stock.
Sorry to bore and bother.
Good luck. |
