6 replies to this topic

[Alton]

Will appreciate opinions on what was happening in the boxed area on the QQQQ chart. This was Thursday, 03.15.07, and suddenly prices started fluctuating wildly. None of the candles formed gradually; prices bounced quickly (intra minute) from top to bottom and in between. There was one huge volume spike near the start, but otherwise volume was high, but not exceptional. Also, how would you interpret this if you saw it happening real time, so you will know what is coming next. Were there any patterns or trends in the wildness which would give a clue? Following the time period shown, the NDX (and the Q's) bounced off the lower level near the end of the chart, made a lower high, a lower low, then another lower high, before easing at the end of the day. The Qs closed at 42.89 and the NDX at 1744.87. Please click the chart for a larger view. [attachment=5400:attachment] I saw the same kind of fluctuations a few months ago just as Fed minutes were being released, but as far as I know the volitility shown in the chart didn't coincide with any big announcements, and it was not the start of a big move. Thanks for thoughts. - A. 03.17.07

Edited by Alton, 17 March 2007 - 03:43 PM.

[HiFiGuy]

I saw similar price action in the 2-3 days after 2/27. It would occur during the first 1.5 hours of trading on some popular ETFs and stocks. what i saw was that the bid/ask was actually pretty tight (w/i .03), but there would be blips of trades 0.60 or so below the bid/ask. I stayed out of the market until it calmed down as there was no way to place stops in that environment. my theory was that these trades may have been made "off exchange", i.e. institutions wanting out of large positions would agree to sell these positions to one of the wirehouses, who would then distribute on the market (profitably, i'm sure). I have no idea if this is correct or not, but curious if others have ideas.

Edited by HiFiGuy, 17 March 2007 - 04:30 PM.

[Long/Short Funds]

It would be difficult to imagine just how many buy/sell stops they hit in that 10 mins. of trading ..

Edited by Long/Short Funds, 17 March 2007 - 05:25 PM.

[Jnavin]

I would not trade QQQQ's intraday based on what I'm seeing here. I'd just stay away from this market.

[vitaminm]

I don't prefer 1min chart for trading.
Use this type of simple trading chart.

http://finance.yahoo...X QQQ...0&a=&c=

[flyers&divers]

These kind of conditions are not that uncommon. They are usually occuring at a time of important releases but similar conditions also often exis right after the opening. Contrary to popular opinion the wilder the market is the less likely it will go anywhere. I do not trade the Q's but I am scalping the Russel2000 futures (ER2). When I notice these conditions I immediately place orders wide apart on both side of the market, rinse and repeat feverously until things go back to normal. Sometimes it is possibleto pull off 3-4 trades within a minute's time. Once in a while I get caught, of course, but overall it is a worthwile setup. I contribute to the stability of the situation by having orders on both ides and I get paid for it.

[traderpaul]

I saw similar price action in the 2-3 days after 2/27. It would occur during the first 1.5 hours of trading on some popular ETFs and stocks. what i saw was that the bid/ask was actually pretty tight (w/i .03), but there would be blips of trades 0.60 or so below the bid/ask. I stayed out of the market until it calmed down as there was no way to place stops in that environment.

my theory was that these trades may have been made "off exchange", i.e. institutions wanting out of large positions would agree to sell these positions to one of the wirehouses, who would then distribute on the market (profitably, i'm sure). I have no idea if this is correct or not, but curious if others have ideas.

It was not just one day....It has been going on for weeks.....Often with only 100 shares.....Not just the ETFs.....Distribution at its finest.....