Monday, October 8, 2007

New Reserve Display Requirements

Last week, the NYSE implemented a new rule that Ray over at Hybridtalk posted on.

You can check his post here.

From a daytrading perspective, it doesn't sound good.

If I understand it correctly, it means that if a customer wished to execute say, a 10,000 share buy order at a specific price, that they don't have to display the full order, instead, they can choose to only display a portion of that order (that would be shown on the tape) and hold the rest in "reserve." Essentially, this protects the customer from tipping his hand and letting people to trade off of his order.

Sounds great, if you're a robot or a huge institution with larger orders to execute. However, for the small fries and humans, it sounds like we're getting the shaft again.

This seems to be the overriding theme of the Hybrid Market since it's inception. Great for the large institutions, bad for the little guys. And really, since I'm sure the overriding percentage of the daily trade volume is coming from the mutual funds and large brokerage houses, I can't blame the NYX for this kind of stuff. However, that doesn't mean I'll like it.

I guess the days of seeing a huge market short stepping down or watching a huge bid "step up" are over. It's time to just get used to the fact that the tape will always read 1x1. No one is going to show the size of their orders if they don't have to.

Goodbye market transparency, hello robots.

Sold POT on Friday

So amidst my smoking on Friday I sold the last 50 shares of my POT position at $106.79.

My swing account currently reads:

300 DSL
100 NMX
-100 JRJC

I made over $800 in the swing account on Friday. Even with some mild losses today, I've more than doubled the money ($2000) that I originally started this account with at the beginning of September.

I'm really pissed that I sold out of WNR though... it's really running now.

The Obvious Economic Call Of The Day

This from the market wizards over at Briefing.com. Meanwhile, full disclosure, I hate Briefing because their customer service is awful. Still, I take in some of their free "analysis." However, as Dick Green (what a name) proves with the following quote, you get what you pay for:

"The outlook is good so long as the economy does not enter recession."

Thanks, Dick.

Poll Closed, Deathmatch Over

"Who will win the deathmatch?" Or, in other words, will JRJC go up or down?

For the 15, or 65% of you who knew that in the end the man known as "Dinosaur Trader" had to beat on the man known as the Ragin Cajun, you can share in my glory.

For the 8, or 34% of you who voted against me I'll assume that you were having a bad day when you voted or that you're new to the blog and didn't realize what was going on.

JRJC is gapping lower again this morning, firmly below $39 now, so my $42 short feels pretty good here. If on the other hand you had bought at $39.65 you'd be thinking about eating corndogs for a full week.

Anyway, I need to talk to "the Fly" to see if I can borrow his "internet laser beam" next time I engage in a deathmatch. It would have been much more satisfying to "melt" Ragin's blog. Instead, he's still over there, plunking away, telling unsuspecting readers that JRJC is a good buy and wooing future employers.

NOTE: Ragin Cajun runs a 4th tier blog.

The Black Kids, "I'm Not Gonna Teach You"

Early morning low-fi. I know I'm still a bit fuzzy.

Virtual Office, -$1411, Dow, +91.70, 14,066.01.

Momojuicing, $867 on 8400 shares traded.
Bubs, $554 on 2700 shares traded.
Evolution, $443 on 41,200 shares traded.
Akalawoo, $18 on 1 contract traded.
Misstrade, no trades.
Denarii, -$304 on 3800 shares traded.
OBAT, -$339 on 18,600 shares traded.
Tapeworm, -$390 on 6 contracts traded.
Me, -$2260 on 10,000 (?) shares traded.

So anyway, as you might expect, given my performance and then the lunatic weekend that followed, I wasn't too eager to come back up into my office and turn these computers on. Hence, the extremely late VO posting.

Weird getting a VO first thing on a Monday morning.

Columbus day too... I wonder if it will be slow today.

Since I never posted a daily post for Friday's performance, I'll sum it up like this. I got short UBB, lost a good amount and between it and FXI got pushed over my max loss limit ($1000) on the day. So I called up my company and asked for $500 more in allowable losses. They agreed and I immediately short more UBB and got squeezed quickly for another point. At that point, I basically covered near the high of the day, around $145. It all happened very quickly.

Sunday, October 7, 2007

Long Weekend

It culminated it me going to a local benefit, drinking too much wine and bidding for (and winning) a painting. I threw down $1500, outbidding some famous photographer who, because he's a photographer, apparently appreciated the painting more than me.

Whatever. In short, don't compete with me. I have an eye for the arts.

My wife thinks I'm nuts.

Anyway, then I came home and ate a hunk of cheese and drank a beer. Now, I'm breaking out the olives.

Tomorrow will be less interesting than today.

Friday, October 5, 2007

Smoked

I lost -$1650 being stubbornly short UBB. End of week, end of story.

Blogger "Death-Match"

POST BUMP

Today over at Wallsteak, I challenged "Ragin Cajun" to a "deathmatch."

I know, I know... that's like "challenging" George Bush to an IQ test or "challenging" Dick Cheney to a personality test, but still, I thought it'd be fun.

And, I feel bad for the guy. He lives in New Orleans, probably in a trailer somewhere, (let's face it) and no one visits his blog.

So here's the deal. I short JRJC today at $42.03 and he got long at $39.65.



In the comments section, place your bets (in terms of "R" of course) on who you think will win.

The contest is over tomorrow.

UPDATE: I've formed a quick poll on the subject. Voting closes at the end of the trading day tomorrow, so go vote!

FRIDAY PRE-OPEN UPDATE: Looks to be gapping higher... over $42... DAMN YOU RAGIN! We'll see what happens into the close, but with the futures up 12 pre-market, I'm not feeling too good. We'll see.


Thursday, October 4, 2007

Radiohead, "Sit Down, Stand Up"

Slower Than Humid Southern Cities

Man... just over a billion shares. What the freaking heck?

A couple of weeks ago I thought we were waiting for the FED meeting to get back to normal trading volume. Now, it's waiting for "The Big Employment Data" tomorrow. Next week I'm sure it will be "we're waiting for earnings season to begin." In short, volume is leaving this market. It's all apparently headed to China. Anyone know where to surf in China or is the sea there a liquefied vat of poison?

Anyway...

I more or less took some profits early today and ran with them. I detailed my DSX trade in an earlier post. Of course, I managed to churn some of my profits from that trade away, but still it was my best stock of the day as I managed to net $958 in it.

My other good trade of the day was a short in UBB.



Here are my trades in UBB:

9:32:32 Buy 200 @ $135.79. (200)
9:35:53 Sell 100 @ $136.43. (100)
9:36:00 Sell 100 @ $136.41. (flat)
9:36:58 Short 300 @ 137. (-300)
9:37:14 Buy 100 @ $137.24. (-200)
9:37:28 Buy 100 @ $137.28. (-100)
9:38:05 Short 200 @ $137.17. (-300)
9:46:33 Buy 100 @ $135.85. (-200)
9:49:59 Buy 200 @ $134.46. (flat)
10:13:01 Short 200 @ $135.87. (-200)
10:14:15 Buy 200 @ $135.66. (flat)

Net profits, $765.

So my back is shot. I'm getting away from this computer for awhile to lay down.

Here's the stats:

P&L, $1564
Best, UBB $958
Worst, DSL -$205


12,800 shares traded.
10 stocks traded, 6 winners, 4 losers.
61 trades.

Virtual Office, $5191. Dow, +6.26, 13,974.31.

Misstrade, $2700 on 6000 shares traded.
Me, $1564 on 12,800 shares traded.
Momojuicing, $483 on 6000 shares traded.
OBAT, $362 on 6000 shares traded.
Evolution, $197 on 42,000 shares traded.
Akalawoo, no trades.
Bubs, -$115 on 3000 shares traded.

You know volume is light when I start challenging fellow traders to "deathmatch" trades via stock message boards... sigh.

We traded, 1,100,122,000 shares today. That's like, nothing. A sigh in the markets.

Anyway, the consensus over at Wallstreak today was that the market was quiet because everyone is waiting on the eco-data tomorrow. Of course, my guess is that CNBC formed that consensus and repeated it over and over again but I don't know that for sure because happily, I didn't have that particular channel on today.

Meanwhile, DIE JRJC, DIE!!! Go vote in the poll.

Stock Gender

Are the stocks you trade male or female? Momojuicing asks the tough questions on a sleepy day in the market.

Swing Trades

Okay, since I was AWOL for most of yesterday, I didn't have a chance to update my swing trading.

On a general note, swing trading is going well. Though I started small, I've almost doubled the $2000 I started with at the beginning of September... and that's after getting smashed in QID into the FED cut.

Anyway, here are the updates:

Yesterday, I short 300 ANW @ $37.21. I covered 100 @ $37.18 and 100 @ $36.24. The last 100 I plan on letting ride.

I covered my LAZ short. 100 @ $45.22 and 100 @ 46.08.

Today I added to my DSL long. 100 shares @ $59.09.

Today I short 100 shares of JRJC. 100 shares @ $42.03.

So for now, my account reads:

-100 ANW
-100 JRJC
50 POT
100 NMX
300 DSL

UPDATE: I covered my last 100 shares of ANW @ $34.72... I guess I need to work on patience... but really, I'm happy with that drop for the day. Ahead of employment numbers I don't want too much exposure.

Complete Chaos

Let me tell you, if you've never witnessed four, 2 and 3 year old children fighting over 1 chair (in this instance, a highchair, they all wanted to be the "baby") you have thus far missed out on a "tiny hell" that parenthood can throw your way.

Congratufuckinglations.

The "playgroup" that descended on my house yesterday just after the close was, in short, my worst kind of nightmare. Normally, I can be jovial and have fun with the kids. But yesterday, my plan was to get the heck out of here and head down to the beach since we have a great 4-5 foot swell running. However, I knew I was in trouble when at 4:01 I heard a male voice downstairs... a "Dad" had brought a kid... what the? And that meant I was compelled to stay.

It's like, you can't leave another guy in a house full of mothers and screaming children. It's part of the code... you just don't do it or you'll end up living in a trailer park someday with 11 red-headed step children and an ex-stripper as a wife.

A poorly aging ex-stripper. With tattoos in bad places that aren't as "taut" as they once were.

Anyway, that was yesterday. And the complete chaos that whooshed into my quiet and humble home kept me from the surf and from blogging.

Thus, I woke an hour before the sun to make sure I'd get some waves in this morning.

It was worth the lost sleep.

The waves were beautiful. It was a cloudy and gray morning here and 4 and 5 foot sets were rolling in from the mist. There was one guy out when I got there, an old guy who rides a beautiful wooden board. He was way outside, but I quickly realized that that was where I had to be to avoid getting rolled by the larger sets that were occasionally running through.

I had the best ride of my life today. I was straddling my board, bobbing around when I saw a set forming out in the gray. The winds here are calm, so it's been hard to really pick out the waves with ease... you need the winds to be a little offshore to make spotting the waves easier, but there was no mistaking the lines I saw forming out there.

The first one came and I let it through, the old guy jumped on it and I watched as he disappeared on the other side of the wave, the only thing visible to me was the churning water behind the break. That's one of the cool visions of surfing... most often you have the perspective of the waves breaking before you. When you're outside, you can see the back of the waves and the way it looks after they break. It's hard to describe, but you see the wave crest and then once it breaks it turns white and then the whiteness grows and spreads out into the surrounding water.

Anyway, I had only a second to appreciate the beauty of that first wave when I was picked up by the second. I barely paddled and got right up on it, very high on the wave and caught a nice 5 foot drop into the belly of the wave. The funny thing is that normally the break is a left but here I took a hard right to ride down the face and then did a left bottom turn to ride the wave in. It was a powerful wave with a good push and I must have been on it for a couple hundred yards because it was powerful enough to reconnect me with the inside waves. It was an amazing ride.

When the wave died, I laid back down on my board and started to paddle back out. With that first paddle, I also did a slight turn, to move the nose of my board into the incoming waves. That's when I felt the pull. My upper back simply gave out.

So, as I type this, I have an icepack strapped to my chair. My back is sore. It's not spasming anymore (it was no easy feat to paddle back in, luckily because my ride was so huge, I was only 50 or so yards from the beach) but it's uncomfortable. And I have to say, that after a ride like that and knowing that this swell should continue for at least one more day, that I'm really hoping it's feeling better by tomorrow morning so I can get in there again.

In March and April when my back was out, it was a nuisance, but no huge deal because I wasn't doing anything active anyway... now however, I find this injury to be completely frustrating... I just want to get out and surf again.

Anyway, so I got back to the desk really late. I made some great short trades this morning, most notably in DSX (the shippers tanked) and UBB.



I'm up nicely. Now, I'm going to lay down with ice, continue reading "The Dogs of Winter" and try to heal as quickly as possible.

Meanwhile, I hope my daughter is the only toddler I see all day.

Wednesday, October 3, 2007

Toddlers

Okay, so I was surprised by a "play group" at our house that began at 4pm... normally I get some warning, today, none.

So, basically, I would love to write about what a crazy day it was in the market, but I have lots of pizza boxes to compact and juice spills to clean. Also, I have to coax my cats out of the basement and let them know the toddlers are gone... for now.

They always come back.

So I'm busy and exhausted. Sorry, but no daily post tonight. Cleaning up and then bedtime.

Virtual Office, $2910. Dow, -79.26, 13968.05.

Momojuicing, $2113 on 11,000 shares traded.
Me, $711 on 32,400 shares traded.
OBAT, $505 on 12,000 shares traded.
Bubs, $341 on 5400 shares traded.
Akalawoo, $114 on 4 contracts traded.
Denarii, vacation.
Tapeworm, computer "fucked."
Evolution, -$874 on 51,000 shares traded.

Well, damn there were some ridiculous moves in the market today... CHNR? I mean, what the fuck? LDK? Holy shit!

And while the market was alternately exploding higher or imploding upon itself, I was hanging out on a misty beach, hoping my 400 shares of RDN would go up a half point... interesting how you can miss a big day like that.

Anyway, volume was pathetic once again. As bearish as I was a month ago, I feel bullish now. I mean, just watch price and volume. Volume goes up on up days and down on down days... that's bullish.

We traded a measly 1,246,748,000 shares today.

No word from Misstrade which is not normal... I'm guessing he either made a bajillion dollars or was torpedoed by CHNR and has jumped out a window... time will tell.

UPDATE: Misstrade is still with us. He made $16,413 on 17,100 shares traded.

Missed Some Huge Moves

I had a choppy morning and started to give away profits, so I slipped out in the middle of the day. When I got back at 2:30, I realized my mistake... there were some gigantic moves.





I hope you, out there in internet land, caught some of them.

2 New Radiohead Songs, "Nude" And "Reckoner"

Ha, "Nude" in the title caught your interest, eh? Damn perverts.

Anyway, here are two live versions of new tracks from the upcoming Radiohead album.



Drive XV

Stereogum has followed up on the success of their tribute to the Radiohead album OK Computer by releasing a tribute to the 15th anniversary of REM's "Automatic For The People."

Man, I can't believe it's been 15 years!

you should see the stereogum.com drive xv player here if you have flash



My favorite covers are "Try Not To Breathe," "Sweetness Follows," "Ignoreland," "Star Me Kitten," and "Man On The Moon." The worst cover, and I mean, and I think it's embarrassingly bad, is the Meat Puppets cover of Everybody Hurts. Maybe it's just because if I have to listen to that song one more time I'll cut my ears off and send them to Michael Stipe... but it was like they weren't even trying.

Pretty much after REM released "Automatic For The People" I stopped following them, but that album is great.

Enjoy the covers. You can stream them on the player above, or visit Stereogum and download them for free.