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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (2688)	3/11/1998 9:23:00 PM
From: steve goldman	Read Replies (1) \| Respond to of 4969

Shorts require an uptick which is sometimes hard to get in a volatile stock. It often requires the specialist or mm to keep an eye on it. On nasdaq stocks, the firm which is holding your order must keep an eye on it and enter it on the nasdaq system (unless they are trying to cross in house) with a SS1000QNTM22 1/8.....now you need an uptick. what is an uptick? an uptick is a tick which is equal to or greater than the last or Equal to the last where somewhere along the line of same prints, these same priced prints had an uptick from a previous tick. ie....22 1/8 , 1/8, 1/8 , 1/4 the 1/4 is an uptick...... Now if the stock was 22 1/8 to 22 1/4 bid/ask and you have a ss at 22 1/8. the stock printed 22 1/4, then 22 1/8, then your order goes in, your kind of screwed...every print on the bid is a downtick, no good no short can get off. If the stock had been 22 to 22 1/8 and quickly popped up after printing at 22, then 22 1/8, 1/8, 1/8 and became 22 1/8,x 1/4 still only printing at 1/8, now you could hit big becaue even though 1/8 is bid, 1/8 is uptick becaue down the road, the previous tick was 22, so 1/8 is upfrom that.... In the first case, when its printing 22 1/8, 1/8, 1/4, 1/8, you now try to short at 1/8..you can't do it....and they cant represent your order....they should try it at 3/16...even if they got if off at 3/16, which woul dbe uptick from 1/8, they would have to give you the piece not allowed to fill yuou at 1/8 and take the Teeny (lingo for 1/16th) for themselves. Lets say the stock moves up to 1/4..prints thru a 1/4, they are kind of in a jam because they cant really make a spread and give you an improvement......Imagine they sell it for 1/4, an uptick, are they giving you that piece, where is their spreead....any spread mean you get a down tick price (uptick-downtick=their profit) so its a tough position to be in......You might want to ask them to not make a market and charge you a little more but represent you ....use ECN and offer at the offer and just hope they take you out. Because we dont make a market and because we dont act as princiaps, but agency only, our niche in the industry, I can sell on the offer, which is almost always an uptick and just give the best price we get to the client, thus they get the uptick. On the NYSE, AMEX, if you firm takes you to primary exchange and not third market, the specialist handles it and will get you 1/4 when it ticks up. Regards, Steve@yamner.com