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

To: Dotty who wrote (4888)	10/17/1999 10:37:00 AM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

Dotty, By coincidence, just finished an overview on volatility for this week's article. Has an example of Raschke/Connors Historical Volatility. The "raw" version is in place at: hardrightedge.com

To: Dotty who wrote (4888)	10/17/1999 11:50:00 AM
From: Eric P	Read Replies (7) \| Respond to of 18137

General Market Commentary... Wow! This past week was the largest point decline ever for the DJIA, over 600 points. In addition, Alan Greenspan is again warning us of irrational exuberance, Y2K worries are approaching judgement day and the Dow 10,000 level is close to being broken (a huge psychological level). How does this affect the daytrader? Well, on average, daytraders tend to be long more than short and may find this to be a more difficult market to trade. If you haven't already, try brushing up on your shorting skills. Rememeber the added restrictions on shorting, including the uptick rule and verifying that your broker has available (borrowable) shares to short. A Dow close below 10,000 will likely lessen the chance of any sustained rally before year end. Therefore, any rally into resistance will be 'shortable.' I think that the likeliest scenario for the current quarter will be a churning or slightly lower market, with the Dow trading between 9,000 and 10,500, followed by a nice move to the upside in January as US companies move beyond their Y2K focus and begin targeting more productive pursuits. Until then, however, it will not likely be a favorable market for 'investors' and more difficult for short term traders that bias their trading to the long side. Even now, I sense the exuberance of traders beginning to fade. It seems that the bad publicity about daytrading, Atlanta, etc. has reduced interest in trading. Even SI seems to be facing substantial losses in posting activity recently. In the meantime, are there any predictions on how the market will open tomorrow. I'm looking forward to seeing the Globex futures tonight, but wouldn't be surprised to see the market go down an additional 200+ points on Monday... Good luck, -Eric