2 Short Term Tactics I employ, any comments???

[wallmann]

TIP #1

If people seem to be lining up to buy a stock--as shown by rising bids for larger share blocks--that's a sign that the price may rise short-term.


TIP #2

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.

 

[tomorton]

Wallmann - yes, I believe you're right with both these tips.

One difficulty I have is finding the stocks that are starting to move after going sideways all day - I can't find any site or programme that will alert me by listing prices that have changed the most say in the last half-hour rather than since the open.

When something starts to move late in the day, there isn't much time to trawl through dozens of charts. Any ideas?

 

[wallmann]

You might try this site to find those stocks...

I suggest you try this site, you may have to register but it is free. Once you are logged in, click on intraday alerts, I believe it refreshes by itself: http://www.realtimetraders.com/index.asp

Our bonus site (for members only) shows those stocks that are moving in the pre-market, at the open we tell our members to switch over to the MAGIC ELEVEN REPORT and to follow the simple guidelines in it as to when and if to buy or short the stock.

TIP

A lighter volume day on a rise is not all that bad if it follows
several good days. Now if it starts to trend down, or if it drops below
average, that is a real warning flag that a top or at least a plateau
could be approaching. A stock cannot continue to climb on lower and lower
volume. Interest is waning. If it is a leader, they will often pull back
to the 10 day moving average. Then you want to see volume drop off when it pulls back or flattens out.

 

[tomorton]

Thanks for quick reply Wallmann - looks like a good site - will have a look at it during trading next week.

Cheers