If you're daytrading, I'm sure you've wondered if there are particular times you should avoid placing trades. You bet there is !!! Toni Turner gives us a dissection of the market timings and their implications during the trading day.
9:30 AM : Equities market open
9:45 AM to 10:10 AM : First reversal period. At 10:10 AM , give or take a few minutes, strong stocks that have pulled back slightly on a bulish day will again turn up. Bearish stocks that went up slightly, start trending down again.
11:20 AM: Begining of lunchtime lethargy - instituitional traders leave their desk for lunch - stocks tend to fall
off - active traders lock in profit by 11:30
AVOID ENTERING POSITIONS DURING LUNCHTIME - LOCK IN PROFIT BEFORE LUNCH - THE STOCKS MOVEMENT, IF ANY , IS WHIPPY AND ERRATIC DURING THIS TIME.
1:30 PM : Lunchtime lethargy begins to clear - some stocks start to edge up for afternoon session.
2:30 PM : Stocks break out (or down) in a more definitive manner
3:00 PM : Treasury bonds stop trading; market breathes a sigh of relief, possible shift in direction
3:20 PM : Active traders begin to close out positions of the day
3:30 PM: Mild reversals possible
3:55 PM: Additional reversals possible as more positions closed
4:00 PM: Equities market closes
This of course comes with the standard disclaimers:
a. Trust but Verify
b. This always works , except when it doesn't. ;)
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