TomLF: RE:" Examining GD Intra-Day Candlesticks..."
You've got good technique, Tom. What it probably is, is what is called a "buy programme" which is a kind of assault by institutional portfolio managers. The blocks indicate a higher quality of capital than a rise caused by lots of smaller investors.
On a "Level II" trading station, folks trading the NAZ can see WHO is buying, you get pretty familiar with the major players.
You must be a contrarian, Tom: a long-white candle like that, on the daily and weekly charts, is steroid-city! Of course now, RMBS...
Buy Programmes are (classically speaking) when an institution buys (or sells - a sell programme) a "basket" of stocks, usually representing an INDEX (like the DOW, for example), in the proportions that they are weighted in the DOW, to actually move the index! The deeper I get into INDEX trading, the more I am starting to learn about these things.
On Friday (options expiration day), we had a "Sell Programme" hit the market (DOW and S&P, mainly) when the OEX was at 925~926. It was very dramatic. Then we had a (surprising to many traders) "Buy Programme" hit when the OEX went down to around 916~917, which persisted until the close (made a beautiful Hammer on the 90-minute chart).
These Programmes in the indices are very, very interesting.
-Steve |
