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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (2455)	9/27/1998 11:21:00 PM
From: tide	Respond to of 7247

Long FHS - Finally threw the dart & almost hit couple of shorts. Ouch that could hurt! Anyway pick is FHS. tide

To: Nazbuster who wrote (2455)	9/27/1998 11:43:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 7247

"On day 2, it opened about 9 5/8 and either dropped to 7 1/2 or shot up to 15 1/2 and dropped afterwards. Which was it?" Opened at 9 5/8 and headed straight down. I was trying to cover at 7 3/4 but didn't get filled. Missed it by that much. CFON was a short over 5 on fundamentals. I wasn't looking at the chart on that particular trade. ""How do you know when the game is over?" "Do most open/morning moves get reversed?" On Nasdaq only, I notice that extreme moves are met with an opposite move the other way. If you look at a stock that gaps down more than 30% it is a high percentage bet that you'll see it move up from the opening price. It is better to wait to see the first uptick if you're just looking for a scalp. I believe it has to do with the lack of natural buyers or sellers after an event. The mm's are forced to buy or sell in order to maintain an orderly market. They get to set the price though, and adjust it enough to bring out folks on the other side of the trade. "When would a morning action be indicative of further similar moves throughout the day? What differentiates the two (ahead of time, of course)?" It really depends on the news, and depends a lot on the market environment. When OXHP gapped down 40 or so points to 38 last year there was no reaction bounce. It kept going straight to 28. That happened on 10/27/98, the day the market closed early because the Dow fell 554. You might want to read "Trading For a Living" by Dr. Alexander Elder. An excellent manual on market (read mob) psychology. Barb