Thursday, March 22, 2007

AN "AHA" MOMENT

Over at http://stockbee.blogspot.com, which by the way I highly recommend, I was reading an article about "Edge and Aha" which says how many of our best ideas come from that moment you say to yourself "aha, i finally get it",the ones where you think "why didn't I ever think of that before".

So anyway, a couple of weeks ago I had one of these moments (in my case I refer to them as my "DUH" moments,ha).
I always start checking premarket activity around an hour before open and refresh it every 10 minutes or so.
In the past I'd do my last refresh around 10 minutes before the open, load the volume and price leaders into my watchlist, go to the chatroom and get ready to roll.
Well I left the page up all day and when I went to check the Afterhours for the next day later that night the page had somehow refreshed itself to the CLOSE of Premarket trading for that day.
I noticed 2 stocks (don't remember the symbols now) that weren't on the leader board at 9:20 but appeared in the last 10 mins into the close.
And these 2 stocks ran really big after the open but , unlike many premarket leaders that gap up big and are many times uncatchable unless you wait around for a pullback if it happens, they did not gap up more than a few % and hung around that mark and didn't run until about an hour or so later.
So I've been tracking these "late" entries to the premarket leader board the past 2 weeks and about 75% of them have shown the same traits as the 2 stocks I found accidentally for the first time 2 weeks ago.

So my DUH moment hit me,to me it makes sense that this angle might have basis to it, that maybe the "news" that drove the stock up in premarket "late" isn't picked up by the bigger players until a little later than a normal leaderboard stock, one that had been on it all morning and in many cases in the aftermarket leader board the night before.

Anyway these stocks this week have hit the board very late that I have seen:

RCOM open 18.92 hod 20.90
HRSH open 2.85 hod 4.12
SIMO open 24.15 hod 25.85
GSIC open 20.68 hod 22.75
VYYO open 5.35 hod 7

There may be folks out there that have caught on to this years ago or just recently, if so please comment on your findings, thanks.

4 comments:

M.A.S said...

lol I had an "AHA" moment on VYYO yesterday and was concerned of a follow thru in volume, tight float, volume rising and lookie like we taking the 52 wk high out, thanks for the heads, Im a seller into strength!
MAS

Rhoniel said...

Which tool / platform are you using to monitor pre-market activity? Thanks in advance.

Muddy said...

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


http://www.tradingday.com

13th said...

Muddy and I both now use InteractiveBrokers for premarket