Day trading in Canada Message Board

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Gold/Mining/Energy : Day trading in Canada

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To: Wizzer who wrote (1547)	11/23/1998 8:05:00 PM
From: keith massey	Read Replies (3) of 4467

Closing 10 minutes... Usually the strength or weakness in the last 5-10 minutes give a good indicator of tomorrows opening unless overnight news influences the trend. This is how I have always thought about it for stocks that are going to have a strong opening the next morning based on the closing 5-10 minutes A stock is up for the day and has been trending up or flatlining most of the day. People see this but are unsure if they should buy. They do a little (or lots) of research, check who is buying or selling, do some T.A on the long term and short term charts, etc., etc.,. After all of this they like what they see but are still unsure so they wait. In the last 10 minutes of trading the stock start to move up and they panic thinking "damm I knew this stock was good but I didn't take a position". They place a market order to get any stock they can before it is to late. All the reasons that caused the person to take the position late in the day still exist after the market closes. People who do late night analysis (both fundamental and technical analysis) see the stock and come to the same conclusion that it is a buy. In order to make sure they get some when they are on their way to work they put in a market buy order for the next morning. This results in the market gapping up the next day. A good example of a strong close is TD on friday. Look at the last 5 minutes of trading on the stock. In the last 5 minutes momentum increased dramatically and the stock jumped .40. The next day the market gapped up $4.80. The big problem of playing stocks this way is the dreaded overnight (after close or next morning) news. At least when news comes out during the day you have time to react to it or your stop loss will get hit in a steady downward trend (if news is bad). If it comes out after the market closes you are out of luck the next day. Best Regards KEITH

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