@CTUCyberGroup Lesson: Follow the Money #CTU #Aftermarket
Today we had another great day in the CyberGroup Live Trading Room. Our afternoon slowed down a bit but with $GTAT $KNDI & $ISR everyone did extremely well. Today I want to follow suit with what has been the hot topic of wall street, High Frequency Trades. Just because someone comes out with a book, throws out the word “rigged,” and continues to bash the ECN’s over and over, doesn’t mean you have to believe it. In fact HFT’s are nothing but our friends.
The following chart of $NUAN is a perfect example of how we use this to our advantage. As you can see from the open $NUAN did nothing but continue to drop. In fact, in the chart you’ll see it’s dropped at 10:30amET over $1 for a great short sale profit. In the day chart, you’ll also see there is nothing in the past 104 weeks that will stop it from dropping way past $13.50. When you look at the level III, what do you think happened? Go back on your execution system to this date and you’ll see that instead of going straight through, it actually popped a bit before continuing to $13. What most people don’t realize is, there is a 10,000 share order on the Nasdaq at $13.50 and on the ask there is only a 4400 share order @ 13.51. Is it supports and resistances that held this stock up or the High Frequency trades?
The point is, do not be afraid of all the hype you hear going on in the news lately. Following these high frequency trades, as long as you know where you can see them, are what makes Wall Street the best traders in the world.