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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (38431)	10/24/1999 7:17:00 PM
From: bearshark	Respond to of 44573

Chip: >>I've heard that big money house managers of major firms, mutual funds and wallstreet firms lock in the bulk of there years profits in the month of October. The public does it in December for tax purposes. Is there any truth to this?<< I do not have the answer for the above. As you know, much of what I do is based on volume analysis. When the INDU stocks move beyond 13 percent of the daily NYSE volume, I consider the market unbalanced. Above that, I feel that the large money is taking up active trading. Currently, the INDU is accounting for 17 percent of the NYSE volume. So we are getting the violent 4 to 6 percent moves in the market each week. Additionally, the volume is alternating between up and down volume with up or down INDU volume accounting for over 20 or 30 percent of up or down NYSE volume during several of the last week's trading days. Another thing I noticed is that the block money is pouring out of the RUT stocks. Although this has been happening all year, it is very pronounced now. Under these conditions, anything can happen. I do not have the time to participate in these violent markets now. Although they can be very rewarding, I won't step out of my trading envelope. I have no idea of direction at this point--neither does the market. If a breakout move up ocurrs, I would expect volume to be around 1.5 billion NYSE shares.