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Hi
Does anyone remember Richard Ney and his revelations about the NYSE
specialist system?
If Ney is right, the Nifty NASDAQ Techs would behave differently if they
were specialist controlled. According to Ney, the patterns we identify in
charts of NYSE stocks are artifacts of specialists trading for their own
accounts. He contended that, in an uncontrolled (i.e. true auction) market,
price movements are accentuated by order imbalances at market extremes. Ney
observed a price/volume signature at important tops and bottoms in NYSE
issues that he used to identify these turning points.
Louis Navellier writes (http://www.investorplace.com/free/bcg_free_011.php):
'NASDAQ is a virtual auction, and many days there are 20 buy orders at the
opening for many stocks and no sell orders, so the stocks gap up. In the New
York Stock Exchange it works a little differently. They have an inventory of
stocks, and they try to fill the stocks in a little more orderly manner. So,
some of the tremendous rally we are having is due to the massive order
imbalances we are now receiving on NASDAQ. These order imbalances will
likely persist in January.'
Has anyone on the list explored the premise that price patterns (especially
at turning points) differ for NASDAQ stocks?
Stan
> -----Original Message-----
> From: listmanager@xxxxxxxxxxxxxxx [mailto:listmanager@xxxxxxxxxxxxxxx]On
> Behalf Of Proffittak@xxxxxxx
> Sent: Friday, December 31, 1999 7:53 AM
> To: realtraders@xxxxxxxxxxxxxxx
> Cc: realtraders@xxxxxxxxxxxxxxx
> Subject: [RT] Re: QCOM
>
>
> In a message dated 12/30/99 9:57:14 PM Eastern Standard Time,
> toddao@xxxxxxxxxx writes:
>
> << Is wall street screwing the public in situations like this or do I
> read to many emails?
>
> >>
> hi
>
> the market makers got together for lunch and decided to take all this
> (stay home day traders money)
> and that's how they did it!!
> it made a very bad candle yesterday
>
>
>
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