11 replies to this topic

[NAV]

I had a bad feeling looking at the U.S markets close yesterday. Today morning, i closed my NIFTY futures longs right at the open (here in INDIA). Immediately the market rocketed another .5%. One of my brokers called "Sir, are you looking at the market today ? " I said "Yes". "Are you long here ?" I said "No" "Sir, i think there's a great opportunity to go long right here." "Sure. Thanks !" and i hung up. My 5-min, 30-min, 120-min were all rolling over at the same time, which i call the combo signal. I went aggressively short, right after i hung up. It was almost like jumping off of a cornice and skiing down a double black diamond. A straight line collapse of almost 2.5% in about 2 hours, with virtually no exit, even on a 1-min chart (Something like a 300 points collapse on DOW). It was almost deja vu for me. Last year, just a few minutes before the waterfall decline in GOLD, i got a call from my broker suggesting me to buy GOLD calls for a runup to $1000 Gold. I am not suggesting that the same would happen in the U.S markets today. But buying the gap-down today, IMHO, is not a LOW RISK gamble. Trade safe !

Edited by NAV, 10 May 2007 - 07:22 AM.

[swanstkdh]

Dont ya just love broker mentality. I am realtor and could not bring myself to the shop last year to sell to the innocent. Went trading instead and make mucho dinero. Love trading. Cannot stand brokers. Thanks for posting. Have had that experience as well.

[redfoliage2]

I'm concerned over the widespread negative divergences of the indicators all over the daily, weekly charts of major stock indices. Add up the seasonality and the price level, I think this may be the turning point. But who am I? Cramer just screamed out this morning: "Don't panic, just time to buy."

Edited by redfoliage2, 10 May 2007 - 07:28 AM.

[OEXCHAOS]

Interesting stuff. I'll bet the broker was honestly thinking things were higher, too. Of course, brokers are generally great fades (see my posts below). They're emotional beasts. I just told subs that the gap will likely be added to. I'm thinking not too far and not for too long, BUT we'll have to see how folks react to the selling. The options stuff was fairly uniform in it's modest but real negativity. More in a bit. Mark

[NAV]

Indian stock market seems to have begun some degree of a wave 3 here.

[arbman]

yes, interesting because I received a couple of phone calls over the past 2 weeks too...

[jjc]

Interesting stuff. I'll bet the broker was honestly thinking things were higher, too. Of course, brokers are generally great fades (see my posts below). They're emotional beasts.

I just told subs that the gap will likely be added to.

I'm thinking not too far and not for too long, BUT we'll have to see how folks react to the selling.

The options stuff was fairly uniform in it's modest but real negativity.

More in a bit.

Mark

Funny; Brokers have access to trade history for each trader. If someone has discovered a particularly
profitiable system trade they can easily use it or abuse it to thier favor.

I wonder does anyone here distribute their buy and sell orders across brokers to hide thier
high probability system trades?

[OEXCHAOS]

I seriously doubt that most brokers pay close enough attention in a trading account, since they don't really have time to service them. To be sure, though, if a I were using a full service broker, I would expect no front running and also I would expect them to follow along if they liked what I was doing. So long as they are behind me and my clients, I'm fine with it. I know that if I was moving a lot of size, however, and I was right enough to draw attention, I would definitely disguise my orders at many different brokers. M

[GOOSE2]

Just my .02 but 90% of brokers do not have a clue about the market. They are simply sales people looking for the commish. btw, I was a broker for 12 yrs......retired from that now and trade my own accts for a living.

[jjc]

I seriously doubt that most brokers pay close enough attention in a trading account, since they don't really have time to service them.

To be sure, though, if a I were using a full service broker, I would expect no front running and also I would expect them to follow along if they liked what I was doing. So long as they are behind me and my clients, I'm fine with it.

I know that if I was moving a lot of size, however, and I was right enough to draw attention, I would definitely disguise my orders at many different brokers.

M

I actually do this with one system; the trade is done in the wee hours and it is made on extremely low volume. I wonder if I'm just being paranoid.