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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (1834)	11/8/1998 3:32:00 PM
From: Rick Faurot	Read Replies (1) \| Respond to of 7382

Daniel, Okay. Thanks for some details. First, I like to focus on the first three hours of trade as prime time. This is usually where the action is more open and less manipulated. Second, the end of day action is often very unpredictable and this goes double for Fridays and extra-double for the recent very nervous markets. So anything after 3:00 EST, I am very very cautious as the trading is often random. I advise that you focus the most on the pre-open and open and thefirst two hours. The best action is then. I'm not that familiar with how ASND trades, but it sounds like there may have been a news story that affected them adversely. My charts show the markets were pretty strong into the close. Maybe ASND had an unusual runup during the day and there was a groundswell of profit-taking. You should know the stock really well before you risk and end of day trade just for the reason of what happened to you. Spooky downdrafts can happen anytime. So you want to find times when the momentum is most likely to be up (if you are long). As i have posted previously, L2 is just one of many indicators that all have to be judged together to get an accurate picture. Maybe TraderAlan could ad something about your ASND trade based on TA. But it sounds like a news story. I always go to briefing.com if something like that happened and try to find out if ASND had bad news or one of their competitors had good news. An example of this is MSFT vs NSCP. If MSFT has some really bad news, it will often spell a boost in NSCP stock since they are competing in a browser war. The L2 picture you describe is very strange. If the stock is falling out of bed, there should be massive amounts on the offer and less on the bid. Rick PS. On reflecting further, what you describe mathces up with one scenario i described in an earlier post where the stock is falling even the the market has turned. This is a case where the momentum down is so strong that nobody can stop it. In this case, the sellers would be absent for two reasons: they've sold out all their shares and haven't renewed their offers; sellers are hustling so hard to find a marketable sell price that they have withdrawn their higher offers in a scramble to enter lower. You will often see this when fear sets in: the sell side thins out for a bit rather than deepening because traders are canceling offers they realize aren't going to work in order to reenter lower. they cancel and then wait for a few moments to see what to do. The converse happens too. When the price firms and the stock is starting to move up, you will see the sell side build up briefly as sellers get confident of where they can take profits. Once the stock starts to move out, the offers thin out real fast again and the stock flies. So you have to get used to these contrarian indicators as they can appear very deceptive.

To: Nazbuster who wrote (1834)	11/8/1998 4:00:00 PM
From: TraderAlan	Read Replies (3) \| Respond to of 7382

Daniel, You found a great example of intraday TA in action with four separate forces at work. I whipped together a quick 5 day with Bigcharts and posted it at: hardrightedge.com a. intraday double top failure b. break of the 3-day trendline c last hour violation of the 1st hour range (probably why this thing accelerated the way it did) d. break of whole number support at 50 I've been watching ASND play this 50 game for months. Take a look at June 9th. That's the day ASND was added to the S&P500. It's spent 30 trading days hitting 50 from one side or the other since then. With so much institutional money coming in that day, the stock attracts all kinds of action near that point. Alan