Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (8611)	9/29/2002 9:15:11 PM
From: orkrious	Read Replies (2) \| Respond to of 30712

The end of this phase of the secular bear should have increased frequency of relatively large percentage drop days justa to clarify, do you mean that we should see higher intra-day volatility?

To: Justa Werkenstiff who wrote (8611)	9/29/2002 10:17:34 PM
From: exp	Respond to of 30712

Jeff, Justa, Ajtj: FYI: Stock Volatility in the New Millennium: How Wacky Is Nasdaq? papers.nber.org Comment: This academic paper does a good job analyzing tech volatility in the 1980-2000 period (especially late 1990s). I find NDX volatility/performance extremely desirable for high-return swing trading for these reasons regardless of the market direction: (1) Chart analysis is very effective for NDX (2) NDX daily and intraday moves are normally limited to +/- 10% because of its index nature (3) NDX gaps are normally limited to +/- 5% because of its index nature (4) The up- and down-trends typically last only several days before reversing (5) The commonality of NDX stocks (tech sector) produces sharp moves both up and down In summary, NDX provides high volatility trading opportunities without substantial risks of price discontinuity and insufficient liquidity due to external events which are often present in commodity, currency, and even futures trading.