Specialist Trading
Putting yourself on the same side as the specialists can often be a
profitable endeavor. I remember Larry Connors telling me that the NYSE
specialists have had the greatest compounded annual return of any group of traders
over the past 50 years, and that makes sense. They don’t get into those
positions because they lose money.
09:51:47
Intraday Setup Alert
Eli Lilly (LLY)
has gained more than 1 point from its open after gapping down well below the 2.0
volatility band. LLY is down 5.80 at 45.10.
The reason for this is simple. The specialists have to buy
stock when there are sellers and no buyers to match them with. So they mark the
stock down to a level where they can buy it low and sell it higher later on.
These types of trades normally move in your favor very quickly, so be sure and
employ a tight stop loss in the event you are wrong.
Until tomorrow,
P.S. I received a large amount of email regarding
my piece
yesterday. Please be patient, I will get to all of your emails.