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[Metastockusers] A tip



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TIP

Late day momentum in either a particular stock or the overall market
typically carries over into the first part of the next day.

Any time a stock rallys on the close, look for a strong open the
next day. The same is true for the overall market.When new 
information about a company spreads and causes a strong increase in 
buying (or selling)in a particular stock and the buying (or selling) 
HAS to stop because the market closes it creates even stronger 
demand (or supply) for the stock the next morning. This happens 
because: 

     1. All the current buyers didn't get enough stock and still have
open buy orders.

     2. The traders that gravitate to moving stocks will see where 
the stock closed, and by looking at an intraday chart, they will see 
that it closed up strong so they will jump in the next morning . Now 
you have 2 groups of buyers adding momentum, which creates the carry-
over of upside momentum the next day. The same is true for the 
market as a whole - when it closes strong, it usually opens higher 
the next morning.

If a stock was going down sharply at the close you would see it open
down sharply the next morning for the same reasons. You can make a
quick profits by taking taking advantage of this scenario. 

For more nightly tips:    http://clix.to/wallmann 





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