|
PureBytes Links
Trading Reference Links
|
I'm thinking, why is everyone selling, when MSFT is only a small part of the
NASDAQ, DOW and SP. Then I heard about all these margin players with
margin calls in their accounts (from the TheStreet.com).
I think this caused a change in thinking in most margin players and everyone
decided to sell at once. I know I would have sold myself, but was all in
cash.
That's just my dumb luck from seeing the daytrading turf.
There's just too much daytrading volume on the go-go stocks (and momentum
players) that when all sell, it just goes out in force (and like-wise on the
way up)
I set my stop limits and go from there. You just have to flexible in
direction.
Momemtum rules in these markets and I think the only logical thing you can
do
after a drop is to go back and study Edwards and Magee. The time-tested
principles will still stand. You have to go back to daily charts and see
where relative strength on individual issues stand and where's the volume
flowing too. These will be the leading stocks in this leg. Next, what
stocks
are consolidating. These stocks have the potential to be the next
leaders. 4 days ago wiped out the last bunch. A purging of sorts to see
what's next. Keep an eye out for strong RS stocks and potential breakouts
from consolidations. These only happen a few times a year and now is time
to
prepare for the next big runup. and that's how I am planning my trades.
Don
----- Original Message -----
From: "Daniel Goncharoff" <Daniel.Goncharoff@xxxxxxxxxxxxxxxxxxxx>
To: <jvc689@xxxxxxxxxxx>
Cc: <realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, April 08, 2000 12:04 PM
Subject: Re: [RT] Non- Manipulation of Stock Market
> This brings up a question that has been bothering me: why would the
Microsoft
> ruling be negative for the Naz. Many more companies would benefit from a
> break-up then would suffer.
>
> Did anyone on this list think, oooooh, I should sell because of the
ruling, or
> know anyone else who thought that way?
>
> Right now, that 'explanation' smells like media bs...
>
> Regards
> DanG
>
> "Dr. John Cappello" wrote:
>
> > I believe your conclusions are correct to a point.What caused the volume
and
> > volatility swings were negative guru comments and Microsoft anti-trust
> > rumors which brought out the weak and the strong hands in the same day.
> >
> > These are phenominal trading opportunities.Based upon this I am giving
> > consideration to fully capitalize an e-mini Nasdaq for 4000 points or
> > $80,000.If you are right on any position you will win.If you are wrong
you
> > can pretty well gut it out to a reversal.Not for the faint hearted.
> >
> > Sincerely,
> >
> > John
> >
> > >From: Ronald McEwan <rmac@xxxxxxxx>
> > >Reply-To: rmac@xxxxxxxx
> > >To: <realtraders@xxxxxxxxxxxxxxx>
> > >Subject: [RT] Re: US Govt. Manipulation of Stock Market
> > >Date: Fri, 7 Apr 2000 15:16:21 -0400
> > >
> > >I was examining what had happened Tuesday to see what useful
information
> > >could be obtained. I did a study of the relationship of volatility and
> > >volume. I used the NYA index because it reports volume. I used the high
> > >low statistical volatility for the volatility measure. I took the 20
day
> > >average of both the total NYA volume and the high low statistical
> > >volatility measure. Based on my results, I believe that with a
continued
> > >increase in daily volume on the exchanges, that there will be a
> > >subsequent increase in volatility. With the increased volatility you
will
> > >see 500 and 600 point swings on the INDU and NASDAQ more frequently.
The
> > >exchanges are doing everything then can to increase volume, so make
sure
> > >you keep a good supply of aspirin. I think what happened Tuesday was
due
> > >partly to the huge increase in volume we have been seeing. The greater
> > >the volume, the greater the volatility, the greater the intraday
swings.
> > >We have seen this already in the Internet stocks exhibiting the same
> > >behavior.
> > >
> > >Ron McEwan
> > >
> > >high low statistical volatility formula:
> > >
> > >=(0.627*SQRT(365.25)*LN(High/Low))
> > ><< volatility_volume.gif >>
> >
> > ______________________________________________________
> > Get Your Private, Free Email at http://www.hotmail.com
>
>
>
>
|