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Strategies & Market Trends : Sector Day Trading -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (44)	4/10/1998 4:07:00 PM
From: Robert Graham	Respond to of 86

OK. I do see that you have as a focus identifying day trading possibilities. Whenever I think of sectors, I automatically think of the funds and what they are doing with their money in the framework of sector rotation. So I will keep you day trading focus in mind. Thank you for your feedback. Like you have mentioned, it still is of benefit to the day trrader to locate sectors that demonstrate strength. For example, I remember Steve in his talk about his approach to day trading that he looks for stocks in a given industry to start popping and then he looks for other companies in that industry which may receive trader interest. This implies that even on the very short term day trading basis, stocks are participated in by traders in terms of their respective industries. Furthermore, by noting the pattern of activity in an industry and its sector over the period of days, the day traders can identify trends that may be of interest not only to themselves but to the longer term trader. This can come in the form of noting the pattern that large block trades take in terms of the leaders of an industry, for example. So indirectly this thread can benefit those who are longer term players in the market. The more I think about this, even though their are day traders that make plays of stock with evident upward and even increasing price momentum, there are others that play the volitility by scalping a part of an intraday swing or by taking the other side of theprice swing at a strategic point, right? Volitility would increase during both the accumulation and distribution periods of a stock. In other words, day traders would also be interested in stocks that are showing decreasing upward price momentum besides those that are showing increasing price momentum. Right? Also there are other day traders that play the trading range stocks. In this respect, looking for stocks that have being strongly accumulated by the big money would not necissarily be a part of a day trading strategy. However, I still would think this type of day trader would want to play sectors that are still exhibiting strength. Just some thoughts. Bob Graham

To: TFF who wrote (44)	4/10/1998 4:07:00 PM
From: ExCane	Read Replies (2) \| Respond to of 86

Irby- I do trade some of these low volume stocks because I use technicals often, then sector and market for confirmation. I find that you can make a bigger chunk faster with a UNPH than with a DELL, you also have less competition. I happen to be lucky with DELL, but get brain damage watching the ECN orders piling up every 16th. I trade both types and admit it's riskier to go with the low volume ones. I don't dip below 100k av vol and avoid the big spread ones with few MM's. I do think we should follow some of the lower volume ones because they move when the sector catches on (opinion my own, comments?). Bob Graham makes good points. If your method is pure tapereading, you have to be where the volume is or there would be nothing to read, I get you. Let's get on with the lists. -Alex