How have I altered my short position? I covered some on Thursday because it hit a trade target, and got stopped out of some today, because it hit a stop loss. Both prices were predetermined before the trade.
Is BKS a good short (day or two) candidate? Up 25% in AH on news they are up for sale. Similar question for PCN.
The reason why there are algorithms forming out of money bid/ask patterns like that is to take advantage of some of the other conventional algorithms that trade on "depth of market". Meaning, some of these conventional algorithms look at how thick or thin the book on a particular stocks is, base their calculations on that, and send out orders accordingly. Knowing this, a competing algorithm can send out large out of money bid/asks to manipulate the book, and thereby any algorithms that are based on the depth of the book. They will never get filled on these orders, but will have control over a host of other algorithms. None of these "manipulations" will have any say on the final direction of the stock in the long run, that is still determined by real market supply/demand. But they can nickel and dime(down an order of magnitude or two) to a fortune. This is a lot of the stuff firms like Goldman Sachs do on a regular basis. They are indeed smarter than most people, but more importantly they understand how the market, or rather system, works, and knows how to take advantage.(legally or not is another question, a gray area for sure)
I also understand that much of it is to flood the order systems to delay your competitor's bid. Crazy.
Hey Clutchfan brahs, I need some valuation help real quick and I know some people here would know. If I believed widgets were going to go up in value, and I wanted to find the value behind all the widget makers, how do I value the widget producing divisions within a large corporation. For example: WidgetPros Co. is a company that solely makes widgets. I can value their widget division easily by looking at the 10K. However, Siemens, also produces widgets but it makes a lot of other things as well. How is it possible to value Siemens' widget producing division? I know it has to do with correlation but I don't know the program or steps to take. Can anybody give me some ideas? Its really important and I need an answer this weekend please! Thanks.
I have another question that I could really use some help on. If I am comparing the values of an Indian company and an American company, are there any accounting discrepancies that would have to be taken into consideration due to different accounting rules?
Pimphand24 - for comparable companies, it sounds like you need to take the "beta" of just the widget division and either CAPM line it, or do comparables with widget only companies. for indian/american companies, you have to determine if one is either cash/accrued or how they handle inventories. it could make a significant difference in the value of the company.
Does anyone know where I can find a handy automatically updated VIX term structure? I don't really care if it's in a graphic form or just lists the current VIX futures at different times. The best I've found right now is individual ones like: http://cfe.cboe.com/DelayedQuote/SSFQuote.aspx?ticker=VIX/Q0 http://cfe.cboe.com/DelayedQuote/SSFQuote.aspx?ticker=VIX/U0 But I'm thinking there has got to be an easier way to track all the different upcoming months. Thanks!
It wasn't that long ago that you had mentioned an <i>Efficient Market</i> in this thread and now you are monitoring the <i>VIX</i>? <hr> <hr> This reinforces what <i>CXbby</i> has said previously in this thread. Even though the author's perspective is Intraday and Short Term, the <i>routine</i> suggested is the same no matter what time frame a person is operating in.
Good risk/reward if one is playing the short side. Current levels index short on the SPX with stops around 1137.
I don't believe in the efficient market theory - I was just curious what others think about it. I'm mostly interested in the VIX in conjunction with the VXX. Its an interesting ETN to trade, in that there's value loss or gain depending on whether the VIX is in contango or backwardization. Last month, I used it as a way to hedge a trade - I sold call options in the VXX and used the proceeds to buy put options in SPY. If the market went up (which it did), I lose nothing. If the market went down, I make money in the SPY option, potentially lose money in the VXX - but since the VIX is in contango, it is a degrading ETN (and the VIX can't go up for ever so the downside is capped), I could roll that over at a higher level to simply delay the gains. I'm looking for better ways to monitor the forward months for the VIX to see how much potential value gain/loss there is in that ETN.
Perhaps you would get a discussion about <i>Efficient Markets</i> in a new thread, but the majority who frequent this thread either have an <i>Edge</i> or are looking for an <i>Edge</i>. In regards to the <i>Vix</i>, someone else will need to address your query since I only devote just a few moments each day looking at it.
The Rook: Where is the market going? Brightside: Let me consult the Magic 8 Ball Magic 8 Ball: Market gonna get a hurt real bad Word on the street is they called Goldman equity, metals and IR guys in on Sunday night. They working double duty the next few weeks.
Check out DEER. They look promising soley by their financials. Rev and NI increasing, no LTD, 75 million in cash, pe around 11. However, they are a chinese company which always makes me think twice, since I'm not as educated on the china's economy as I am on the US's.
