GLW and Stop Sweeping

Now that I am a little cooler about the whole affair - I wanted to explain why the GLW specialist ripped me off yesterday. He had a large order for GLW just above 22.60 - probably an institution reloading after the selloff that's been going on in front of earnings - looking through his book he realized two things: 1 - he had a lot of stops down to about 22.20 and a lot of buy orders between 22.20 and 22.60 - so first he sweeps the stops to gain inventory - then he sells out the inventory to everyone down below to get the price back up and finally he fills his large order. In 3 minutes he turned over 3 million shares, in 15 minutes he literally round-tripped 9 million shares or over half of the 14 million shares traded yesterday. Can I prove this - no - why bother we all know what happened and it was my fault for putting a stop so far out of the money that it couldn't possibly be hit unless the stock were going down to stay. Ha - Ha - Ha.

Easy money for the book and one more reason to only use electronic trading as offered by NASDAQ.

The New York Stock Exchange is so 1900's - don't you think?

Tuesday Wrap Up

Oh boy I wish I had passed on today - but nooooo I had to play GLW (Corning Glass). I took a position and watched it drop a bit - I doubled up and watched it drop some more - I said no matter it is bottoming and will come back - well it did - but only after the specialist running the book ran my stop and about a thousand others - in the space of 3 minutes he round tripped 3 million shares taking out a whole bunch of stops including yours truly - end of the day - GLW finished in what would have been for me a profitable area. I wish I had passed but more importantly I am a fool for using a stop on a volatile stock - but GLW is not a volatile stock - today was its most volatile day in about two years. I'd say a bad word but it wouldn't help.

GLW has bottomed and tomorrow it will go to the sky - I'll be there - and this time no ill timed stop sweep will catch me out.

Tomorrow we can expect more of the same - except that earnings this evening are coming in strong and righteous and I think we might even go higher - the three sisters all finished the last hour in the green - the up/down ratio is neutral at 42% the new 20 day lows actually added to their anemic total and are up to 272 while the highs are backing down to 731. The VIX came back into neutral territory and the magic coin - 23 and 10 having picked today correctly - says for tomorrow - tails - the bear is about.

We'll see.