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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Ken Wolff who wrote (511)	2/15/1998 12:52:00 PM
From: Bruce Hoyt	Read Replies (1) \| Respond to of 2120

Ken, have you seen the Technical Analysis by Zeus website? They post their track record of recommendations on a weekly basis and the result percentages are almost unbelievable. The only problem I have found in examining the details of their paper trades is that they appear to count gains beyond what would have probably been their exit point but not losses beyond the probable exit point, based on their posted rules/suggestions for entering and exiting. Even with that caveat they do appear to be very successful in identifying momentum plays through technical analysis. Their exact filtering criteria is not clear to me yet but I guess that's why they can charge $ 79 a month. I would be interested in your opinion on this service, although I understand they are a competitor. Here is their website, with free trial available: zeus-holdings.com And thanks for your lessons on this thread. They are outstanding! Bruce

To: Ken Wolff who wrote (511)	2/15/1998 1:34:00 PM
From: freelyhovering	Respond to of 2120

Ken--Criteria for a "good post here"? Will you tell me when I have achieved it. I have only played at Day Trading when I have a couple of hours off and can get to my computer at home. However, I have been lurking on this thread for awhile and have been sopping up the good info that you dispense. I have been sharing it with my wife and a few wanna-be day trader friends. I don't have any wisdom to share yet. I have been getting pretty good at some TA concepts and post on many threads to sharpen my thinking and get feedback. I hope this post qualifies me for your e-mail offering. If not, I will keep trying. Myron

To: Ken Wolff who wrote (511)	2/19/1998 7:43:00 PM
From: Dan Duchardt	Respond to of 2120

Ringers: I've read the last 50 posts on this thread, so I still have about 500 to go, but I hoped to get my rite of passage taken care of. (Email coming your way Ken). Hope I'm not being redundant with any earlier posts. "Ringing" is a phenomenon known to any good engineer when something overshoots it's "steady" value, oscillates with decreasing amplitude and finally settles in. What does that have to do with stocks??!! Stock prices do it often, with huge volume, on over reaction to news. The short open strategy discussed in some earlier posts takes advantage of this on up openings. I've had some success (on paper only so far) with stocks that gap down. There seems to be two types of behavior: 1) price is already below the steady price at open and quickly rises, and 2) price is still falling rapidly; of the 2nd, some just bottom out eventually (hours to days) and some turn sharply upward. Both types can ring for a while before settling. If you can find such an animal, and quickly identify the type, you can grab some nice gains on the first up move, and some more on the first down move. Wish I could predict which type before the fact, but so far I can't. Last week, on 2/12/98, CYTC gapped open down $6 1/2 at about $20, slipped about $1/8 and held for about 5 minutes. At 9:34 I was satisfied it wasn't falling and "bought" it at $20. At 9:43 I got shaken out at $21 1/16, back in at $21 3/8 at 9:45, and out again $21 1/2 at 9:47. A few minutes later it peaked at $22 and started turning down. I shorted on an uptick at $21 1/8 at 9:59 and covered at $20 1/2 at 10:22, but the price kept going down almost to $20 again, then moved more slowly toward $21. A net of $1 13/16 (less commissions, of course) in less than an hour, and I left about that much on the table. After it was all over, I found the news of a report on the "modest improvement" from using CYTC's pap smear test. Price shot up in late afternoon, probably because of company rebuttal of the report. Stocks that gap down and are still falling can be caught on the upturn, and then the down with similar success. As always, you have to trade what is really there, not what you think is going to happen. Get out quickly if it's not going your way. You need a way of finding these things before the open to take advantage. I had the luxury of a workstation that scans market maker activity before the bell, but you can also get wind of them from CNBC Instinet activity reports. Hope to try a few of these live before too long. Dan