Daytrading with Consensus

[Ares]

Watching 9.50 as resistance.
will the next push take out 9.45?

[Ares]

Out at 9.12
This is what I get for getting greedy.
Instead of getting out at 9.41( I considered getting out when I saw volume slowing down and getting close to the 9.50 resistance but didn't. My first indicator was when the B+ was broken without enough volume.)
I got out at 9.12 at a loss instead.

[Ares]

Well, market's closed and IMMR didn't go down to the 8.03 buying range.

BRCD would be interesting to watch on monday.
If it opens above 9.08 and below 9.23, it would be good to see 9.23 broken with increased volume.
It filled the gap at 8.73
Daily chart shows decreasing volume as price was pulling back and increasing volume when it made a higher high.

It's been interesting to watch  IONA dip within few cents of my buying range of 5.48 and went up soon after.
The low volume for Daytraders is bad but for longterm holders, this would probably be a better entry.

[Ares]

Tried to play around with my profile.
I was trying to paste a picture of my own but the page doesn't seem to be loading it. There must be something I'm not doing right.

[Ares]

Another thing that's running through my mind about BRCD is:

A big buyer may have given a market maker instructions to buy at a + or - price range.

If BRCD goes up above 9.36 in the coming days (where I saw a block print of at least 300,000 in the green) a pension fund or an institution may really want to be in on this stock.

Selling on an uptrending stock that doesn't have bad news is most likely just profit taking.

There must be a good reason for someone to buy blocks.

Most block buyers or sellers know better than most retail investors.

I still have to find out if a selling volume capitulation on the daily chart is mainly caused by retail investors panicking or if there are block trades (from institutions) selling on that particular day too.

As of today, I think block trades exit or enter way before a selling or buying volume capitulation occurs.

[Ares]

Weekly chart.

Looks like a spring ready to explode.
MACD above the zero line and is about to cross.
Histogram is starting to move away from a valley.
Stochastics has crossed.
Volume is up.
RSI is also pointing up.
50ma above 200ma.

[Ares]

I noticed that my rating went up - I just don't know the reason for it.
I wish I knew.
Thank you for whoever gave me that.
I'm trying to contribute whatever positive thing I can here at 3SOF because I really like this board.

[Ares]

Poll: When the offer is lifted and time and sales prints green, how does level 2 move?

clockwise = 1
counterclockwise = 0
I don't know =  3

According to most books and what I've learned, level 2 moves counterclockwise.
The more offers are being taken away( which shows green at the time and sales), the higher the offers become resulting in the bids going higher too.
It would show on level 2 as offers moving towards the bid in a counterclockwise movement.

[Ares]

More thoughts regarding BRCD.

BRCD gapped down at the open on friday.
I missed out on the artificial gap down.
Artificial gap downs is where market makers normally take advantage of the automatic stops just below the previous day's low to be able to buy the stock they want at a discount.
It was close to daily support.
It filled the breakout gap.
I'm only willing to play BRCD as a day trade.

For long term holders of BRCD, this is the most recent article I got.

3 Sell Signs
By Rex Moore
March 3, 2007
Most loyal Fool readers know how we feel about selling. If you've found a great company with top-notch management and a strong competitive advantage, the best time to sell is almost never.

But that doesn't mean we hold on blindly. Things change, even with the greatest of companies. That's why we're constantly evaluating our stocks and watching for the danger signs that can torpedo our portfolios.

Today, I'd like to share three rules for selling, as set forth by Fool co-founder Tom Gardner for his Motley Fool Stock Advisor members.

1. Selfish management
Tom calls this the "worst possible development" for any of his companies. If the executive team starts worrying more about lining its own pockets than creating value with the business, it's time to let go. For clues, keep an eye on excessive compensation, active insider selling, declining market share, and aggressive accounting. For me, it comes down to the trust I have in management, and I rarely hold a stock once questions arise. The latest example is the ongoing options-backdating mess involving past management at firms such as Brocade Communications (Nasdaq: BRCD) and Comverse Technology.

(Just to clarify: The U.S. government has filed criminal charges against former executives of Brocade Communications, alleging that they engaged in securities fraud resulting from backdating of options, although the federal prosecutors have not alleged that the executives, who have pleaded not guilty, personally received such backdated options.)

2. Competitive disadvantages
Competitive advantages lead businesses to high returns on capital and equity. They could result from many things -- for instance, the "network effect" advantage enjoyed by eBay (Nasdaq: EBAY), which gives it far more buyers and sellers than any other auction site. This powerful force was underestimated by many investors when first Yahoo! (Nasdaq: YHOO) and then Amazon.com launched their own auction sites several years ago. Though eBay's stock price suffered over fears that these other big names would erode the company's market share, neither could gain much traction, and eBay ran away with the race.

If your company is facing weak pricing power, a declining customer base, and lower market share, it's likely operating at a competitive disadvantage.

3. An unstable financial model
First, let's think of strong companies with stable models, like Nokia (NYSE: NOK) and Valero (NYSE: VLO). They're known for stable or rising margins, tight control over working capital, steadily increasing sales, and loads of cash from operations. Companies that aren't following suit in two or more of these categories are showing us a big red flag.

What about valuation?
Obviously, a stock carrying a sky-high valuation is a candidate for selling. But this is the toughest call of all. If properly valuing a company is so easy, after all, everyone would be rich ... happily buying low and selling high. Even Tom has been burned in this area, having sold companies based on valuation, only to watch one or two of them shoot up in value afterward. So tread carefully here; it takes many accurate valuation-based sell calls to make up for just one missed multibagger.

But the three sell signs I've outlined above aren't too hard to spot. Tom and his brother, David, have employed accurate selling and buying guidelines on their way to outstanding performance in Stock Advisor -- 64% total average returns versus 26% for equal amounts invested in the S&P 500. You can get a look at their two picks for new money now, plus all their past recommendations, free of charge with a 30-day trial. There's no obligation to subscribe, and full access to the Stock Advisor service is just a click away.

This article was originally published April 12, 2006. It has been updated.

Rex Moore is brought to you by the letter "R." He owns shares of eBay. Amazon.com, eBay, and Yahoo! are Stock Advisor recommendations. The Fool has a disclosure policy.

The chart is saying 1 thing and the "news" is saying another thing.
Let's see what the market decides to do on monday.

[wrangler]

Hi again Ares
Interesting poll, and will be interesting to see the differant answers. Mine was I don't know. The question you're refering to is day trader question and I believe not to many people day trade here.
I would like to learn day trading better but I've always read in differant books that when you find the system that works for you then stick to that system. All traders uses differant systems and everyone has got to find the one that works best for them.
I have stated that you need to show lessons on how you day trade. It could open up a new approach here and make a good thread.
Look how Samantha started the options thread and it's very interesting to read. If I can learn enough from it I might decide to give it a try one of these days.

[Ares]

Hi Wrangler,

It feels like I'm inching towards that direction.
I'm just being cautious because I don't want to step over someone else's rights.
I wish someone would give me a confirmation that what I'm doing is allowed.
What I did recently is to give out a poll that ask general questions regarding daytrading that is published and used by at least one author.
I believe long term holders would benefit knowing how daytrading works and how to get a better entry price since they're planning to hold the stock long term anyway.
It makes a lot of difference knowing what you know and doing what you know.
Emotion is still a factor but is getting more under control.

Ares

[wrangler]

Ares
I stated that Samantha started options thread. After going to the options thread I don't know who started it but it seems she gave out a lot of useful info. on it but more than just her post their. I just wanted to clarify that and not take credit away from others who makes the option thread a valuable part of this site.
This is you're personal log that you can post anything you want. If you want to post your trading style and how you go about doing that I don't see why you can't. I'm really interested in how you read the buy and sell ticks to determine when to buy or sell and point the direction of the stock price. I don't use level 2 quotes but I believe you must to observe this kind of trading,,is this correct.
If you post some trading strategies that you learn from someone else just give them credit for it and how it has helped you become a better trader and the strategies that you have learned to input from theirs.
That's all part of the game ,,same as going to school. You must first learn from a teacher and give that teacher credit then pass on what you have learned and how you have gained from it to others still learning.

[AussieTrader]

I'm just being cautious because I don't want to step over someone else's rights.
I wish someone would give me a confirmation that what I'm doing is allowed.

As Wrangler says you can post what you like in this thread, as long as it is not blatant pumping or advertising or some other scam based rubbish

Good Trading

[Ares]

Thanks Wrangler and Aussietrader for confirming that with me.
I believe I've already given credit to the sources within this thread.
I've read the post of other traders here at 3SOF regarding level 2 too, I just can't remember which thread it was and who posted it.
I wish other daytraders within the 3SOF would also share their level 2 strategies in here.
Someone mentioned that he/she was a contrarian and that he/she buys when the MM's line up at the ask.
That's what I look for too.

I'll cut and paste quotes from other 3SOF members that seems to share what I'm looking for in here.

Big blocks been coming in since 10:30. Should challenge resistance at 5, and looking for a breakout

Check out this new Real Estate Exchange http://www.inreex.com and
http://www.inreex.co.uk It's publicly traded too (IRXI), I believe it
IPO'd on Monday. I wouldn't be suprised if they get buyout offers from
NYSE etc. down the road? I am going to grab a few as I honestly think
this could be a $10, $20, $30 stock down the road as there is nothing
of its kind out there considering the real estate market is worth
something like 20 trillion dollars. But now there is this exchange
that lets you specualte on Real Estate without having to buy actual
real property. The stock also has a nice share structure as you can
see below.

Share Information
Authorized 50,000,000
Issued and Outstanding: 45,540,000
Public Float: 4,125,000

http://www.inreex.com/InvestorRelations.aspx

Here's some News from this morning...

INREEX, Inc. Looks to Revolutionize the Way You Invest in Real Estate
Friday March 31, 9:33 am ET

LONDON--(BUSINESS WIRE)--March 31, 2006--INREEX, Inc. (Pink Sheets: IRXI - News) is excited to present to the public a new way to invest in the real estate market, without the need to own physical property.

"In the last few weeks we have seen an overwhelming increase in participation on our real estate prediction exchange. We are excited that investors are responding to our product in a favorable manner and hope to continue perfecting this new and innovative way to participate in the real estate market," said Paul Rozenberg, CEO of INREEX, Inc.

The INREEX which stands for International Real Estate Exchange is an exchange exclusively dedicated to trading real estate tracking contracts. These contracts track the price of real estate in a specific area and are quoted electronically on the INREEX exchange. The INREEX exchange has the look and feel of a traditional stock exchange. Each contract has a bid, ask, volume, level 2, time and sales, and even charts that go back 30 years. Trading on the exchange can be conducted 24 hours a day, and 7 days a week.

"We feel that there has yet to be a major enhancement to the way real estate speculation is conducted and that it is time to commoditize this vast pool of equity," continued Paul Rozenberg, CEO of INREEX, Inc.

The trading technology allows an investor to log in from anywhere in the world and buy, sell, or short the entire United States of America. INREEX offers its users free tools such as real-time quotes, advanced java charts, real-time order book, time and sales, watch lists, and a proprietary real time screening tool that allows an investor to easily identify trends in the marketplace.

"Whether a speculator wishes to bet that the price of real estate will go down or a day trader is looking to take advantage of an arbitrage opportunity, we want to facilitate that activity and become the premier destination for electronic real estate speculation," concluded Paul Rozenberg, CEO of INREEX, Inc.

FNIX - So much to say, will keep it simple here...
- Hammer close on Friday
- 52 week low
- All buys end of day, last trade on my ticker came at 4:10
- 10 bidders waiting on bottom at .018
- Sellers coming down
- Indies bottomed out
- Shortest volume day Friday, (see chart history for this as an indicator)
- Fading resistence sell side
- Down trend on good news
and so on and so on.....looking like a great week in the making fer FNIX


Has continued to fall from grace, small spikes on the chart surrounding its press, but never able to hold gains. Decent gains on 3 day plays as it has worked its way to bottom. How do I see bottom here? I've watched the stock for a couple weeks now and watched as the sellers have come down to meet the buyers at the .018 price. Slowly working down and becoming harder to buy, there is a mass of buyers sitting at .018 waiting to pounce as the sellers continue to line up soon to create no solid resistence. FNIX has continued to drop to a 52 week low on advancements from the company as spouted out over the last couple months.

I am no big fan of press release runs, but, when the press good as it can get, continues to bring the price lower, it would seem to me a make ready time for chart reversal, and a run back up, much the same I saw in XKEM before its turn.

Quiet as a church mouse farting into a cotton ball was the activity on Friday with only a few taking advantage of the bottom price of .0181 just above the wall of of buyers at .018. Leading the level 2 and sitting on top is NITE at .018 with what looks to be a sizeable order.
Where is this going to go and when?
I think come Monday we are going to see a whole new shape of things to come out of FNIX. Accumulated all the way down and still buyers waiting 10 deep at .018, as the spread thins, this is going to make some great play for those that are able to grab at bottom. Going off its news cycles, I see a turn for the better, possibility of a press release early next week and a long way to top. As in all great plays what goes up, must come down, grabbing the bottom before she heads back up does tend to pay a lot better then trying to catch a ride in motion.

XKEM currently up 23.56% in level 2

[Ares]

Premarket most active:ONNN,ALTI,SUNW,LVLT,CYTR,MEMY,IMMR

BRCD
1 did not have 15,000 by 6:15am
2 negative net price

I wonder if this will touch 8.60 today

Watching 9.23 resistance to be broken.

So far, it went above the previous hour's high and traded at least 25 cents above the open.