Tag Archives: Volume

Pause after big move

Posted on by

It looks like all indexes pause a little today.

SUNW continues to move up with heavy volume.

SOHU is at its peak (19.15) since IPO. It has made massive moves from the risk of delisting last year when it went under $1.

Which pond are you in?

Posted on by

Here’s an interesting article. Here I copied portion of it. We can figure out which pond we are in.

NAME POND HOLDING PERIOD FOOD SOURCE QUALITIES
Investors Random No clue No Clue No Clue
Mutual Funds Daily Weeks Investors Huge amounts of money, Marketing/research groups, and a tackle box full of Investrador lures.
Swing Traders Daily Days Investors Smart, careful. Decision-making after market hours.
Institutions 15 Minute Hours Mutual Funds Deep pockets, Move Markets over short timeframes, very astute, inside information.
Day Traders 5 Minute Minutes 15 Minute Fish Waits for rock solid plays. Decisive. Decision making during market hours.
Momentum 2 Minute Seconds Investradors Timing High Volume, High Volatility Stocks.
Scalpers 2 Minute Seconds Everyone Happy just going click, click, click all day long.

Basically, you are taking money from the timeframe above you and giving money to the timeframe below you. For example, if you measure your holding period by minutes, then trade off a 5 minute chart. However, you need to monitor the 15 minute and daily charts for opportunities. Likewise, use the 2 minute chart to monitor that pond for hazards. But remember if you are playing in the 5 minute pond then stay there. Don’t move from pond to pond.

Big day for SUNW

Posted on by

Wow, SUNW went up 12.31% with 130MM shares changing hands. Average volume is typically around 50MM. There’s a buyout rumor too along with 5MM block trade (possible institution order). Sold some holdings in the range of 3.54-3.73 and held rest of it. It’s building a nice base around 3.3 before this breakout. It will be interesting to see what’s behind today’s move.

DOW closed at 8,582.68 with lower than average volume; NASDAQ ended at 1,502.88 with average volume; S&P 500 ended at 930.08; Russel 2000 ended at 407.67; all indexes are right sitting at resistence.