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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (2873)	2/6/1998 7:16:00 PM
From: ExCane	Read Replies (1) \| Respond to of 12617

Steve- I have to say that your post was exactly the kind of discussion I come to this thread for. The majority of the traders at my place trade the groups including the leaders, though each group has it's own personality, like the banks (CCI will kill you if you're wrong) are influenced by things other than the drugs and so on. As you said, it helps to find the secondary stocks, but you have to be careful the market is with you. I find it helpful to have all of the sector indexes and their components on your screens, ready to go. It takes careful tapereading with this strategy, not TA, but you can "arbitrage" a group member just by watching a group as a whole, seeing the size of the prints, where they are occurring (closer to the bid or offer), the size of the bid/ask (mainly NYSE, nasdaq level2 is mainly smoke & mirrors) the velocity of the prints, you can catch one ready to move. Obviously nothing is guaranteed, but new traders should try papertrading with a liquid group for a while. A group I've had more gains than losses with is a small group of drugs MRK, JNJ, BMY, ABT, AHP and PFE. Say they're all ticking up and BMY is behind, the futures are heading up, size offers are getting taken in the group, I'll buy some, hang with it till either I'm satisfied with my gain, negative news release, the futures turn down or prints on other group members are starting to happen in the middle or bids are getting hit. Sometimes there is a reason a stock may be behind and you have to do some homework. If the futures continue up and the stock backs off a little I may buy more if I see nothing negative. In that case I may end up profiting on the trade at my first entry point. It's a rough game and the market has no mercy so we all need to be cautious. I believe discussions like these would be of benefit to all including what groups are influenced by what, what group members are garbage, ABC owns X% of XYZ, who has latin american exposure, etc. What do you think Steve, anyone? Thanks for the post. -Alex