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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Rick Faurot who wrote (1137)	6/19/1999 11:41:00 PM
From: KM	Read Replies (2) \| Respond to of 18137

There's one late day pattern I see over and over which I've been playing with lately. On the internets which have run hard during the day and are near the high of the day, somewhere between 3:45 and 3:55 EST, the daytraders will start bailing in numbers, the bids drop, and these stocks will drop several points. I've seen CMGI for instance drop 3-4 points in a matter of minutes during this period. I've been experimenting with sneaking in and picking up a couple hundred shares into this downdraft. After these guys are done dumping, the mms bring the bid back up and the gap players come in and usually drive the stock right back up. I've been flipping these blocks right at the close for anywhere from 1.5 - 4 points. I scalped a point on NSOL Friday right at the close doing this - first trade of the day in the stock. This works best on rally days though when a follow through can be expected the next day. It also works very well on RMBS, one of my old favorites, because the mms in that one really hose exiting daytraders at the end of the day, then bring it right back up. I've even shorted RMBS 20 minutes before the close anticipating that and have scalped that way because you can put your cover bid in and they'll almost always come down and hit every one of them before it's over.