Saturday, May 05, 2007

Trading Questions

There are some long standing questions I have about the market that I would like to find the answers to. There may not be any hard answers, but I've been pondering these things for awhile and want to research them further.


How do the overseas financials markets affect the liquidity seen in the US markets, specifically, how certain times of the day we see patterns, perhaps due to overseas money closing out positions before a certain time of day (ie. reversals 1 hour after US market open and 1 hour before the close on strong trending days).

How do you analyze premarket volume on ES, and do you have a bias leading into the open based on the volume and price range seen during the after hours?

How do you compare the volume on ES to the price range seen; moreover, how do you compare the price range seen to the avg. volume seen during this time of day?

How do you incorporate the COT reports into your daily/weekly analysis?

Do you watch option volume on SPY, Q's, and IWM during the day, and if so, how does large volume on one side affect your trading?(ie. heavy puts bought during the first 15min, or heavy calls bought during the last 15min)


What's the deal with 10:30am and 3pm reversals?

How does PREM (program trades) effect ES, and how do you react to it?

What stocks in the dow jones 30 industrials participate in the program trades? (also, what about Nasdaq and SP500 stocks)

Do block trades occur on the majority of the dow 30 during program trades?

Can you cofirm breakouts with block trade executions seen in multiple stocks in the Dow 30 occuring at the same time?

When do you add to winners? (on breakout trades? what time during the day? When price is making new highs/lows? After the release of economic news?)

How long should you hold on to a losing trade?(Is this actually a question I just asked? How about 2 seconds hold time)

What is the average bar length on a breakout and how many minutes does it take for price to hit its peak before pulling back?

Do breakouts peak in 1 min, 3 min, 6min, 15min, or does it depend what time of the day it is?

What does time and sales look like during the price climax?

What time frame do professional traders trade on?

How long do the pullbacks typically take?(what does the time and sales look like during a pullback)

Who are the people buying the breakouts and how far do they expect price to go? (What type of orders do these people use? Limit orders? Trailing stops? Discretionary?)

Who are the people fading the price highs on NYSE TICK extremes and what are their profit targets for fading the breakout?

On a breakout to the upside on heavy volume, have you ever seen a retracement happen in the next 15min to the downside greater than where the breakout to the upside originally occured?(I don't recall ever seeing this type of pattern)

What happens during the price on ES when NYSE Advance/Decline line breaks out of its daily range?

When is heavy volume seen in the top sectors, and how does this relate to what is happening in ES? (sectors-XLE, XLF, SMH)

If there is a trend in ES, what is the angle of the trend? (Is this angle steep or a gradual angle)

What is the opening value of NYSE A/D, and does this value have a statistical advantage to taking a bias position for the day?

What is the trend and volume leading up to an economic #, and is there a pattern fortold before the #'s release?


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