TSBTV#13 - Market View 2-1-2009
Posted on: February 1, 2009
As is the usual custom here prior to the start of another trading week, it’s time to take a good thorough look at the major averages before we start pushing buttons! Nothing else out there has such a consistent impact on how individual stocks move, so the action and the character of the indexes just cannot be ignored.
So here in Episode 13 we’ll run through the big 3 and see what’s up. These next few days may prove to be pivotal ones, so it’s certainly a time to stay on our toes.
Make it a great week of trading!
(Be sure to click the full-screen option for best viewing.)
Hope you enjoy the show! Thanks for watching and subscribing, and feel free to post your ideas and comments down below.
Trade like a Bandit!
Jeff White
President, TheStockBandit, Inc.
www.TheStockBandit.com (Premium service)
www.TheStockBandit.net (Trading Blog)
February 1st, 2009 at 8:12 pm
Hello - I think these videos are great and you are doing everybody interested a real favour.
One comment I would like to make re day trading is that recently Bloomberg TV showed a breakdown by the hour and they said that, more often than not these days, the decisive moves (>50%) of the day either come in the first hour or the last two.
Which is about my experience, too. If you don’t anticipate things the evening before and get in, you can’t catch the big overnight move.
Why is it that they always move at night and give us such a hard time?
February 2nd, 2009 at 12:43 am
Hey Peter,
It’s great to see you and I’m glad you stopped by. Thank you for the nice comments, they are appreciated!
We really have tended to see quite a few days where “the move” happens early or late. There just hasn’t been a whole lot of trending mid-day, and that’s something to be aware of. Thanks for mentioning that.
Personally, I have not ever attempted to catch the big overnight move, as it really feels like a gamble if you’re trading equities. Futures traders can find some measure of liquidity overnight, but with stocks that isn’t the case. So if we do get a big gap, I just hunt for trades following that gap which are in line with my approach.
As for why so many big moves have happened at night, I do think a lot of it is futures-driven. This market is so eager to anticipate news and what it might mean that I think traders are really seeking out any sort of edge by monitoring the overseas action and then basing their orders on how they think it might impact the early action here in the U.S. So we end up with futures traders helping push the market one way or the other, as well as stock order imbalances at the open (which cause gaps) as buy or sell orders build up ahead of the bell.
Hope this helps! See you back around here soon, thanks again for your comment Peter.
Jeff