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Block Trades, do they short ?


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Block Trades, do they short ?

  #11 (permalink)
SunTrader
Boca Raton, FL
 
Posts: 260 since Nov 2018
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goodknight View Post
The tool that I am using is located as a Tool on StreetSmart Edge which is Schwabs trading platform. There are other brokers, and scanners, that offer similar Block Trades reporting data. I have the tool setup to only view trades on the NASDAQ.
In the attatched image, I have the first list setup to show Blocks that have occured greater than 750,000 shares.
In the second list, I have the filter setup to show trades greater than 1,000,000 shares.
The first trade on the first list is RTX for $73.91/share, a small Block Trade of only 930,000 shares for a total value of $68,736,300.

Most of these trades are posted immediately after the markets close.
In doing so, they are satisfying the FTC reporting rules, but the volume is not seen as vol..

I don't trade equities so I guess I can't help beyond my prior post but I have to ask, why do you want to follow what someone else (even a big block trader) is doing? Correction what they've already done.

They've no doubt more firepower and more staying power. As well as the possibility they are buying and selling on behalf of another party. Too many unknowns IMO to understand why and what they are doing.

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  #12 (permalink)
 goodknight 
Dallas Texas/USA
 
Experience: Intermediate
Platform: NinjaTrader
Trading: stocks
Posts: 16 since Oct 2013
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The initial reasons that I wanted to follow Block Trades (a.k.a Smart Money) is three fold. (1) Very large volume would create either a large supply, or a large demand, (2) they are the insiders with information before the general public, (3) I did not want to take trades in the opposing direction to Smart Money.

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  #13 (permalink)
Lfx987
London
 
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goodknight View Post
The initial reasons that I wanted to follow Block Trades (a.k.a Smart Money) is three fold. (1) Very large volume would create either a large supply, or a large demand, (2) they are the insiders with information before the general public, (3) I did not want to take trades in the opposing direction to Smart Money.

But which side of the Block trade do you consider to be the "smart money"? For every buyer of a block trade, there is a seller. Which side do you consider to be smart money and why?

What if Institution A executed a block trade of long 1mn today and Institution B initiated a block trade of short 1mn tomorrow, how do you interpret that?

As many have alluded to already, what if it's part of a portfolio or a hedge or even to get out of an existing position?

Even if you did establish the trade was a vanilla long or short, if the trade is then exited in smaller tranches, how would you ever know when to get out?

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  #14 (permalink)
SunTrader
Boca Raton, FL
 
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goodknight View Post
The initial reasons that I wanted to follow Block Trades (a.k.a Smart Money) is three fold. (1) Very large volume would create either a large supply, or a large demand, (2) they are the insiders with information before the general public, (3) I did not want to take trades in the opposing direction to Smart Money.

3) ok to an extent.

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  #15 (permalink)
 goodknight 
Dallas Texas/USA
 
Experience: Intermediate
Platform: NinjaTrader
Trading: stocks
Posts: 16 since Oct 2013
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brucegibbs View Post
Hi, most large trades are OTC in the spread by MM. You can check them at the end of the day at FINRAR. All dealer transactions OTC have to be reported after the market closes.
So if you see a big trade that you want to check go to December 2020 Daily Short Sale Volume Files . Remember that if your summation is correct, Short is Long and the inverse. So turn the figures upside to see if the big trade was buy or sell. If a MM sells short to a big player, the big player is long thr stock and vice verser.
I'm developing a tool/site to display this in a better way.
If you don't mind paying a subscription fee, Matt Z' offers a great service and the best explanantion for lay people to this at squeezemetrics.
https://squeezemetrics.com/monitormonitormonitor/download/pdf/short_is_long.pdf
Cheers Bg

That is great information !!! It not only provides a list of block activity but explains why the short reports are actually long trades. Thank you for both URL links.

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  #16 (permalink)
 goodknight 
Dallas Texas/USA
 
Experience: Intermediate
Platform: NinjaTrader
Trading: stocks
Posts: 16 since Oct 2013
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Lfx987 View Post
But which side of the Block trade do you consider to be the "smart money"? For every buyer of a block trade, there is a seller. Which side do you consider to be smart money and why?

What if Institution A executed a block trade of long 1mn today and Institution B initiated a block trade of short 1mn tomorrow, how do you interpret that?

As many have alluded to already, what if it's part of a portfolio or a hedge or even to get out of an existing position?

Even if you did establish the trade was a vanilla long or short, if the trade is then exited in smaller tranches, how would you ever know when to get out?

Smart Money is not my creation. It typically refers to the massive huge traders that trade in volume and dollars far beyound the power of ordinary mortal men. The have millions of dollars to trade. They probably are priveledged to reasearch and info that the average Joe, does not know. I do NOT mean it to be ugly to the individual money / traders.

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  #17 (permalink)
Lfx987
London
 
Posts: 51 since Apr 2019
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goodknight View Post
Smart Money is not my creation. It typically refers to the massive huge traders that trade in volume and dollars far beyound the power of ordinary mortal men. The have millions of dollars to trade. They probably are priveledged to reasearch and info that the average Joe, does not know. I do NOT mean it to be ugly to the individual money / traders.

I know what "Smart money" means.

My point was which side of the trade would be considered "smart money"?

You have two institutions, one on the buy side and one on the sell side, which of these would you consider to be "smart"?

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  #18 (permalink)
 
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 justtrader 
San Francisco, CA
 
Experience: Intermediate
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brucegibbs View Post
Hi, most large trades are OTC in the spread by MM. You can check them at the end of the day at FINRAR. All dealer transactions OTC have to be reported after the market closes.
So if you see a big trade that you want to check go to December 2020 Daily Short Sale Volume Files . Remember that if your summation is correct, Short is Long and the inverse. So turn the figures upside to see if the big trade was buy or sell. If a MM sells short to a big player, the big player is long thr stock and vice verser.
I'm developing a tool/site to display this in a better way.
If you don't mind paying a subscription fee, Matt Z' offers a great service and the best explanantion for lay people to this at squeezemetrics.
https://squeezemetrics.com/monitormonitormonitor/download/pdf/short_is_long.pdf
Cheers Bg

I could not find this pdf --- https://squeezemetrics.com/monitormonitormonitor/download/pdf/short_is_long.pdf

TWYS NWYT (Price Advertises Opportunity; Time Regulates it; Volume Measures its Success/Failure ---- Dalton)
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  #19 (permalink)
userque
Chicago IL
 
Posts: 180 since Apr 2016
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https://squeezemetrics.com/monitor/download/pdf/short_is_long.pdf

Copy and paste the above.

Appears to be some sort of bug in this site's link parser.

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  #20 (permalink)
 brucegibbs 
Canberra, ACT, Australia
 
Experience: None
Platform: tradestation, CMC
Trading: Gold GC and Crude Cl
Posts: 3 since Dec 2018
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The bug in the link was probably my fat fingers sorry !🖐 cheers bg

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