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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: SHAWING who wrote (2965)	10/28/2005 4:00:20 AM
From: Walkingshadow	Respond to of 4814

Hi Shawing, Yes, you are right. There were three separate volume surges at market lows (QQQQ that is). Each was bigger than the previous. QQQQ was down 2% on the day, which is a lot for that index. The Dow showed triple-digit losses in the same week that it showed triple-digit gains. This kind of volatility is very typical of reversals... people (bulls and bears alike) get shaken out of their positions more easily, which increases volatility. The volatility last week was similar, and was attributed to options expiry. This week is different. I see a pretty strong surplus of buying volume now, and the market has to react to that sooner rather than later. I suspect we'll see a rally begin tomorrow. The press will attribute this to the market concluding that the FOMC won't raise interest rates Nov. 1 because of today's bad economic news (Durable Orders came in much worse than expected). But this will not be the real reason. I think we'll see yet another classic example of how economic reports and earnings news can have a marked effect on the market, but it only lasts for a day or two tops no matter how good or bad the news is. These things simply do NOT determine market trends, other than trends lasting a day or two, frequently just intraday. By Monday, nobody will be talking about the Durable Orders report anymore, it will be forgotten completely and will not affect the market. But I haven't looked at much in terms of the chart, internals, etc. Hopefully later tonight or before the open. Right now the futures are flat to slightly in the green. I'd like to see one more dip with another volume surge tomorrow. That would seal settle things I think. T

To: SHAWING who wrote (2965)	10/28/2005 3:07:29 PM
From: d j chen	Read Replies (3) \| Respond to of 4814

Terry and Shawing, This may be a dumb question, but how does one know there is buying or selling? I mean for every transaction, there is a buying party and selling party. In some cases, one party is individual and the other is the market maker. In other cases, none of the two parties is a market maker. Which side should be considered in determining buying or selling? By looking at the volume data, how do I know which side (the individual vs market maker) is on the buying side? Thanks. dj