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

To: Dominick who wrote (9064)	6/20/2000 5:14:00 PM
From: Dominick	Respond to of 18137

In the recent past there was some discussion about "painting the tape". I ran across this great article from Gitanshu Buch post on realtraders.com. I received his permission to post it here. This past Friday's action is a recent and excellent example. Watch last hour Friday and first hour today to see what and how it gets done. Pull up intraday charts on any free service for the following: EMC: 3% move up in the last 25 mins on Fri and no follow-thru today. PAYX: 5% move in last 30 mins on Fri and no follow-thru today. CSCO: 3% spike up in last 30 mins on Fri and no follow-thru today. Downside: S: 4% move down in 1 hr into Fri close and no follow-thru today. MCD: 3% move down in 1 hr into Fri close and no follow-thru today. All of the above typically have gap openings on the day after. See this long enough, and one learns to pick out the craziness. No, this may or may not be options expiration or SPX rebalancing related. Here's another example from last week, mid-week: On 6/13, GLW closed @ 16:01 NYSE @ 243.00 traded @ 16:03-16:07 on various other exchanges @ 241-243. traded @ 17:03 on nasd @ 248 and 249 on 600 shares. Total volume for 6/13 was 4.3 million shares, with a volume weighted average price of 236 (ie bulk of volume traded at 236). 2 trades, one with 500 shares and 1 with 100 shares pushed the stock up 6 bucks from NYSE close. Those were the last trades as recorded on the consolidated reporting system. In the attached gif, look for the action around index reading # 13. Next AM, GLW opened NYSE @ 241.75, down 7.25. It took 4.3 million shares to move stock up $13 from the 6/12 close. It then took 600 shares to move it up another $6. If this ain't tape painting, I don't know what is. I don't know who crossed those trades of 600 shares. But that became the official closing price for that date. Looks like 600 shares made 50% more money than the rest of the world made that day on GLW. Could you and I get filled $6 above NYSE close? Nope. No exchange would cross it. A-ha! Now we have sweetheart prints appearing.... Pull up a daily chart of GLW. See if the 6/13 bar qualifies as the ""follow-thru confirmation of a cup and handle breakout pattern at new lifetime highs on double average volume". GLW of course is now "consolidating". As Jeff Cooper's father likes to say, stocks don't move. They ARE MOVED. Gitanshu