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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: eichler who wrote (32587)10/11/2000 7:59:53 PM
From: dli  Read Replies (1) of 42787
 
A pattern that I have found to be very reliable and profitable for AH trading is with stocks selling of sharply on heavy volume (down 15% to 30% on no or non-catastrophic news like brokerage downgrades) that end the day at or near their session lows. 80% to 90% of the time they will trade up after hours general market climate permitting, often quite substantially. The pattern is especially reliable if selling accelerates within the last 5 to 15 minutes. You have to make sure to pick up shares right at the close or right after by putting out a bid slightly below the closing price in advance for the last panicky sellers to hit. Don't try this, though, unless you have direct links to all active ECNs and are able to hit MMs that are active after hours.

Dave
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