Wednesday, February 7, 2007

PREMARKET VOLUME ACTIVITY, ANOTHER "EDGE"

From a recent Stockfetcher forum discussion:

Muddy:
1/31/2007 9:27:54 AM

watching GVGC at a buck from pre market vol scan.
from my "beat down" scan with big vol selling increase yesterday.
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Muddy:
2/5/2007 9:10:41 PM

Up 111% in 4 days.
I'm sure the veteran traders here know this but newer traders,this volume stuff works.
Premarket and intraday.
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Muddy:
2/6/2007 7:36:54 AM

Someone asked how I found GVGC,this is how:

Fetcher[stocks where volume is 500 percent above average volume(90)
and price is between .05 and 20
and date offset is 1/30/07
]


I then arrange them with the biggest % losers at the top.

Then I load those into my watch list and beginning with the premarket open I watch for volume and bid/ask action.
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2/7/2007 12:23:19 AM

Muddy, is there anything special about the offset date you selected?
or, do you pick an offset date a few days into the recent past?

What works best for you?

Thanks
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Muddy
2/7/2007 7:04:10 AM

I used that date offset as an example to show GVGC,now up 155%!, and how to arrange them in order to show the biggest losers at the top.

I use a date offset of 0 when searching for premarket volume candidates.
Yesterday there were 2,RNCH and TTDS,that showed a nice spike in premarket volume activity.
One could see by the premarket bid/ask activity that RNCH was probably opening down and TTDS up.
TTDS showed around 7500 shares traded pre and if you chart it you'll see many recent days when it didn't even trade that much in the entire trading day.
I believe this gives me yet another edge on the market.

TTDS opened at 1.63 and at 1:32 p.m hit a high of 1.95,closing at 1.81 giving me yet another nice gain.

Today I'm watching in premarket action:
CENT CTTD JSXG GSAT ENCO LSPN ACGI CPHI OPTI PBH CBPC PRCP PRTL ROCM CHTP FRP

6 comments:

Prospectus said...

Muddy,

How do you know if something is going to open up or down by watching the premarket volume? What bid/ask action are you looking for?

Muddy said...

Hi Pro,
I can see which stocks have any volume to speak of on my trading screen and also where the bid/ask is.
If the bid/ask is changing very frequently and it's in either direction up/down from the previous days close you can most times tell the direction that stock will take at the open.

BTW,Thanks for the mention on MTM regarding your FCEL trade.

Prospectus said...

Thanks Muddy for your blog and chatroom! I was also wondering--what's your relationship to Stockfetcher--satisfied customer or are you one of the developers?

Muddy said...

Pro'
I'm just a Stockfetcher customer.

Anonymous said...

Hi Muddy,

where do you watch premarket volume? Some web-page or your broker?

Thank you
bielyplafon

Muddy said...

http://dynamic.nasdaq.com/dynamic/premarketma.stm

If you check tonights,3/16,chatlog today I explained a few different ways to use it.