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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: TATRADER who wrote (3385)	9/29/1998 11:38:00 PM
From: dealmakr	Respond to of 59879

Mark, When I trade the sector my screen has about 20 stocks on it. A few airlines like AMR,DAL and FDX to see if any oil pricing news is causing stregnth or weakness. XON to watch for oil price and DOW movements. Oil service stocks Like RON,MAVK,VRC,FGII and WFD. Drillers like CDG,FLC,MRL,GLM,RIG,ESV and PKD. Also checking the futures prices on crude. I generaly look to see; #1 Price of crude(strong or weak and range) #2 General trend of overall market #3 How are the trannies doing and any oil pricing influence #4 Price of XON compared to price of crude and market in general #5 How the sector opens in the morning and how it holds up at 1000 in comparison to the market as a whole. A lot of the sector will trade in a pretty constant daily range and discrepancies can occur when for example FLC is up a 1/4, the sector is mostly green, but GLM is down 5/16. GLM,ESV and FLC to me appear to trade pretty close in correlation with each other so I look for opportunies where price differences may be exploited. I try to see the laggards as well as the possibility that others have gotten ahead. I watch the tape or time and sales to see where the blocks are trading. Today there wasn't a great deal of volume on those stocks as compared with other days. Airlines were down, crude was up and XON was very strong. A lot more stock looked to me to be trading on upticks as compared to sales, but Fed selloff occured and everything went down on low volume. I bot ESV @12 when size came on the bid @ 11 7/8 and looked for a rebound. Didn't think it would go back all the way up, but was able to sell @ 12 5/16 when spread was 1/4-3/8 with upward bias. Was looking for the same thing from GLM, saw that it sold off on small volume and quickly came back. Saw 50k block on the offer for GLM @12 being chewed up and when that was done the stock may run a bit. I follow the same stocks everyday and learn something new everyday about how they trade. The times that I see the most movement are from 0930-1030 and 1430-1600 as they open and as positions are taken or closed for the day. I don't look for very large movements, just try and make a good percentage of winning trades. Also a lot of these issues trade on the NYSE and its easier to read the sizes to buy and sell. It also helps to get good fills. My trade sizes range between 1-4k so if I can get a scalp a couple of times a day, I can do ok. I couldn't do this away from the puter screen and usually go flat when away. You have to be quick when the moves happen most of the time on entry and exit. I do look for gap potentials holding overnight and will sell into them, but am holding a lot less overnight due to market volatility. Everyday is a new day in the sector and I'd rather be a trader than an investor at this particular time. Hope I wasn't too long winded. Dave PS: Thanks for the thoughts on the XAU.