Don’t Believe The Hype
I get emails all the time from traders seeking strategies to make better use
of the streaming java applet on the TradersWire. Today’s early trading was a
perfect example of how the applet can enable you to separate the wheat from the
chaff, and zero in on the issues that you can profit from. Listening to the
commentary on CNBC this morning you would think the world was coming to an end
and that it wasn’t going to stop until we all were absent of any footwear and
cooking stone soup. This type of emotional overreaction however, provided
several excellent opportunities for the nimble trader to profit from, if you
knew where to look.
I was already thinking about the potential for a rebound before the trading
day had even started. In spite of all of the futures being down and the
inevitable down open in the the equities market that would follow, the Insights
From The War Room had alerted the fact that we had five
Market Bias Indicators pointing to the upside, and that it was important for two
reasons. One, the market was very oversold, and the possibility of a bounce
existed. Secondly, if we did continue to delve into deeper oversold territory,
the failure of these signals could be substantial. While at the time of this
writing we are not positive in the Nasdaq and the Dow is down over 300 points,
the significant bounce of the Nasdaq Composite
(
COMPX |
Quote |
Chart |
News |
PowerRating) was a potential
boon to quick thinking daytraders. Knowing how to spot this via the java
applet’s alerts would have provided you with some valuable assistance.
The first tip off of a possible reversal taking shape was delivered on the
applet at 9:57 EST, when the fact that bellwethers Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) and Sun
Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) came up on the screen as going positive for the first
time of the day.
Search Results
Total Records: 211 Â Â Â Viewing Records: 76 to 100
| Newsfeed | Time (EST/24hr) | Symbol | Headline |
| STK | 09:57 | AMGNÂ | goes positive first time of the day |
| STK | 09:57 | SUNWÂ | goes positive first time of the day |
These two biggies starting to turn to the upside got me to take
a peek at the intraday chart of the Nasdaq 100 index
(
NDX.X |
Quote |
Chart |
News |
PowerRating), and three
minutes later I posted this alert:
10:00:33
Surge Alert
The Nasdaq 100 Index (NDX.X)
has reversed off its intraday low following this morning’s big gap down. The
index of the biggest Nasdaq issues has gained nearly 50 points in the last 15
minutes. Some of the Nasdaq stocks that are going positive for the first time in
the session: Power-One (PWER)
up 11/16, Sonus Networks (SONS)
up 5/16 and Verisign (VRSN)
up 1/8.
Â
When a program buying alert came across the applet at 10:09, the
stage was being set for a morning thrust to occur. The final piece came together
when EXFO
(
EXFO |
Quote |
Chart |
News |
PowerRating), Protein Design Labs
(
PDLI |
Quote |
Chart |
News |
PowerRating) and Human Genome Sciences
(
HGSI |
Quote |
Chart |
News |
PowerRating) came along with another program buying alert.
| STK | 10:22 | PDLIÂ | goes positive first time of the day |
| STK | 10:23 | EXFOÂ | goes positive first time of the day |
| STK | 10:24 | Â | PROGRAM BUYING IN EFFECT |
| STK | 10:25 | HGSIÂ | goes positive first time of the day |
With the NDX rallying off its lows, and the three above stocks
proceeding to take out their closes from the prior day, the pickings were ripe
for the nimble.
Â
All three stocks rode the short-lived thrust for decent gains,
allowing the observant trader to profit, while the long-term buy-and-holders are
either sharing a tearful hug by the water cooler or stubbornly refusing to
believe this may take a while for this to play out before some of the damage
will start to be repaired.
Until tomorrow,
Duke