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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Gush who wrote (5707)	3/2/2005 12:12:35 AM
From: Walkingshadow	Respond to of 8752

I don't really think of it that way. Sure, MMs have a lot of clout, but it is not like they are arbitrarily and unilaterally moving markets at will in complete disregard to anything. Instead, they are aligned with the professional traders and professional/institutional buying/selling interest, and together these determine market direction. So, they are also at the mercy of the net professional buying/selling pressure just like we are. The only difference is they have their finger on that pulse much more than retailers can, and they wisely align themselves accordingly and so add a bit of gasoline to the fire. As the expression goes, "Amateurs in the morning, professionals in the afternoon." 139.142.147.22 Note that the traditional after-lunch move in QQQQ began suspiciously early at about 12:30 pm and was down... that is highly unreliable, and a daytrader should be looking for surges of volume and reversal as QQQQ trades down. You wouldn't have had to wait long. It looks rather subtle on the AskResearch charts, but you can clearly see a surge of volume that temporarily stopped the decline just before 1pm, then a short, aborted move up, another less enthusiastic decline accompanied by a surge of volume closer to the traditional reversal time zone at 1:30pm, and a reversal candle. Next, the volume evaporates, and a hollow candle marks the entry point. Go long immediately after that candle is completed. Personally, I probably would have gotten in a bit too early, because the reversal at about 12:40 satisfies my entry criteria, so I would have gone long immediately after that hollow candle after the reversal candle. I would have been a bit underwater for about 20 minutes as the real reversal was forming. But anyhow, there's something else I see about the volume that has changed from what we have seen again and again and again over the last 3 months: when QQQQ rallies, it is not being met with a wall of volume at peaks anymore. At least, so far this week... this constitutes evidence that the medium term correction is running out of steam and will end sooner rather than later, provided this pattern continues, and supportive volume such as I described above continues to accumulate. ....all IMHO, of course.... T