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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: peter n matzke who wrote (4283)	5/23/1998 1:32:00 PM
From: Temple Williams	Read Replies (1) \| Respond to of 12617

I have been watching an interesting short-term divergence between the Spoos and the E-mini contract for months. So have others, I'm sure. There's a Spoos day trade in here somewhere and I am trying to figure it out. I would appreciate use of the collective brain available on this thread. The Spoos (S&P Futures) stop trading between 9:15 and 9:30 every morning. But the Baby Spoos ... the E-mini contract (1/5 of a "big" contract) ... they trade between 9:15 and 9:30. Back in the 60's and 70's, a lot of us watched Odd Lots to "see" what the "little guy" was doing. I have a feeling that the E-mini trading between 9:15 and 9:30 may represent a "tip-off" of similar magnitude (Odd Lot trading was great 30 years ago, but it does not work very well any more). The point is this: by watching the E-mini action between 9:15 and 9:30 a.m., "da boyz" in the pits must get a feel for what the "little guy" is doing. If I was working the pits, I'd sure look at it closely. Like it or not, the "little guy" is synonymous with "weak hands." It's easy to scare the E-mini buyers and sellers ... it's a slam-dunk to run their stops. Friday morning was not a very good example, because trading was light before the long weekend, but the "weak hands" showed a definite bias to the upside. So what happened? The guy's in the pits picked off the "weak hand" stops by dropping the market from it's spike almost immediately. First, they picked off the E-mini holders with 2-handle trailing stops in the first 4 minutes. Then they ran it back up there and picked off the 3-handle trailing stops between 9:36 and 9:42. These guys are good, and it must be "free" money for them. I'm an old Spoos trader (there are no young ones ... they either die a quick death or get "old" real fast :o) ... Spoos are all I do, and I prefer position trading to day trading. But this is a definite daytrade thing. I'd appreciate any thoughts on a set of rules for scalping this trade. This seems to be the right thread to ask. Thanks. Temple skansearch.com

To: peter n matzke who wrote (4283)	5/23/1998 2:59:00 PM
From: Morpher	Respond to of 12617

Interesting. If this wasn't one of the exceptions and MASH accepted your order, I would think it's definitely a violation. Here is a section from NASD manual about representing customer limit orders: Market Makers Must Reflect Customer Limit Orders In Quotes In all stocks covered by the SEC Rules, customers are not required to request that their limit orders be displayed in a market maker's quote. All customer orders that are priced better than a market maker's quote or that add size to the market maker's quote at the inside price are required to be displayed, unless an exception applies. Exceptions include: block size orders (e.g., 10,000 shares or $200,000 market value); odd-lots; all-or-none orders; those executed immediately upon receipt, sent to another market maker or a linked ECN; or those requested by the customer not to be displayed. Customers do not have to ask for their limit orders to be displayed -- it is the obligation of the market maker to display the orders, unless instructed otherwise by the customer. Market Makers Must Display Customer Orders The SEC Rules require members to display customer limit orders as soon as possible, within 30 seconds of receipt in normal market conditions. The 30-second rule does not apply at market openings or shortly thereafter, when trading reopens after a trading halt, or when an Initial Public Offering (IPO) first begins trading, but it does apply at all other times. Members are reminded of their obligation to comply with the 30-second time frame.