Marketgeometry

Tuesday, April 3, 2007

Important Lessons 4/3/2007

Two important things I have learned that I have never read or been told about:

One - if a stock makes a big move up or down at 8:00 AM, it should have some type of similar move at 9:30. If not, it is a high probability of going the other way. Case in point - see CEGE below. I have seen this work many times.

Two - watch how a stock trades before 7:30 (the early bird hardcore traders), at 7:30 (Fido starts trading), at 8:00 (Schwab, Scottrade and other general public brokers), at 9:15 (Fido shuts down it premarket), at 9:25, 9:28 (watch how the market makers setup) and 9:30 (when the on the open trading public get their orders executed), this will give you clues on who is trading the stock and sometimes you can take advantage of it.

No comments: