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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: shasta23 who wrote (24024)	10/18/1999 12:13:00 AM
From: d. alexander	Respond to of 68212

Stefan: Doro is fine. x signs himself x, so I use that as a guide. Briefing has a good earnings calendar, but it's a subscription service. Their archives are really great also because you get moment by moment response to things that were happening then, rather than a cleaned up reportage or recollection after the fact. JMO d. (it's faster)

To: shasta23 who wrote (24024)	10/18/1999 4:48:00 AM
From: Clint E.	Read Replies (2) \| Respond to of 68212

Hi STEFAN! As far as fading the open, it should be obvious that I am no expert and have not routinely traded this way on daily basis in the past. Nevertheless, I have noticed an unusual number of times (~60-80%) that opening gaps have reversed within the first 15-20 minutes in the NASDAQ market(stocks instantly opened). Furthermore, without access to level II, I do trust myself in gauging which way a stock(on my play list) is trying to move. after watching it for a few minutes. Therefore, what I said was that given the current scenario at work, starting in Jan. I intend to stay home during the 1st 90 minutes of trading & fade the open when deemed appropriate. I may not trade or trade aggressively every day. I don't need to. This technique works most profitably on news-driven days such as Friday with extreme up/down gaps. That's when a trader should be most aggressive. Everyday is different and the group of stocks to play would be different as well. A watch list could be a combination of news-driven, oversold, and momentum-driven stocks. Knowing those stocks is a must. For me, fading the open on Friday was to wait until the NASDAQ drops to -100 or near it previous support at 2700. I told my Mom to watch the nasdaq quote on CNBC for me and tell me when it would hit -70, -80, -90, and -100. Minus 100 happened after all the Dow stocks opened within the 1st 20 minutes(usually have to wait for all the dow stocks to open and see how the Nasdaq responds). My watch list was mostly SOX-related stocks with earnings news from the previous night, sympathy plays, and EXTR(momentum-driven). Stocks like PMCS, AMCC, BRCM, and SUNW. In hindsight, I missed BVSN and shouldn't have because it was an oversold stock(from 184-143 in three days). Just like AMCC was an oversold stock but that was also a sympathy play for strong earnings out of brcm+pmcs, plus it dropped nicely to its 50 day. >>>But what do you use as indicator? Certain indicator stocks?Tick? And do you play individual stocks or do you use stuff like QQQ,SPY? or maybe both? It is never the same. As I said, on Friday I was looking for -100 or 2700 in the Nasdaq as I was checking my stocks. When they opened the Nasdaq right below its 50 day, it was given that we are going lower once all the Dow stocks are opened and we get a -200 Dow print. I knew I was buying EXTR at the open because that had momentum from previous night and I expected it to reverse quickly. But I also knew that I am dumping it between 90-95 because of the upcoming secondary. After buying extr, I just waited for my numbers(-100/2700) to come in while watching sunw+vrts+pmcs+amcc+txn+......At this point, having been thru such openings hundreds of times, experience in gauging momentum or severity of any selloff plays a big part in pulling the trigger especially as your targets are reached. As far as the market, everybody should take notice of the direct relationship between the severe drop(~12%) and weak earnings by the Dow stocks. The Nasdaq is holding up for a simple reason, Earnings. INTC had no business of going to ~90 and therefore the correction in INTC and the one-day drop in the nasdaq are behind us. The next two weeks should be better than the previous week, now that INTC is history and since as of this coming Tues. PPI+CPI would be too. Clint