newskate
29 posts
msg #30730
- Ignore newskate |
1/20/2004 10:06:37 PM
Good day all, I asked this question on some boards and not many responses, so here goes....
In setting up my tracker for the picks for the day, I’ve noticed premarket activity and volume. In the past few days, the volumes on several have taken off prior to open, and then after open the price jumped up. The move up
continues or drops, but in each of my observations lately, it has gone
at least 3 and some as high as 11%.
The set up I saw and maybe didn’t know what I was looking at: A. A pick from my filters [that is, ready to jump up] B. premarket last trade above previous close, C) lots of volume and D) the key maybe, a huge amount of bids
just below the last trade. In the few I’ve seen this week the bids
ranged 1-10 cents below the last, and the volumes were as high as 50k
shares (on my yahoo tracker – it may have been even higher on a more
powerful tracker). Twice, I set a buy limit at the low end of that
grouping, twice it hit, and twice I nabbed some neat gains. Fun
thought is, there were more examples I could’ve done this on.
The question – am I seeing this right? It almost seems like the last
trade is a dam ready to burst with all sorts of bids / volume just
below – i.e. lots of people thinking the stock is headed up? And my
impression with those honorable market makers is they would never give
up the commissions of all those shares, right?
Any perspective would be helpful.
Thanks, Stephen
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