Importance Of Pre Market

[Grey1]

Pre market is the foundation of stock direction for the rest of the day .. Right ?

NO WRONG

Pre market stock price movement is only of any value if has the support of the conference calls (EARNING REPORT // SOME UPGRADES/ DOWN GRADES ) for a particular stock provided there is a pending news on the stock ... other wise it is the stepping stone for MM's to execute their order flow @ VWAp for the rest of the day .. Since we donot know their intention hence we should not be reading much from their pre market activity .

Should I buy pre market for bargain ?

Why do you want to buy bargain ? Not a car boot you know ? Lets see what stock's behaviour is then buy it bargain .


Should I close my position pre market ?

Why ? gimme a reason


grey 1

 

[evostik]

Hi Grey1

In anticipation of learning something from you I will risk being wrong and give my answer...

If I went long/short premarket I would aim to close premarket for my profit. I would avoid being in a position WHEN the market opens because wild swings at open would probably stop me out anyway. So, unless your just in for a gamble then YES, close premarket.

Cheers

Steve

 

[Grey1]

Hi Grey1

In anticipation of learning something from you I will risk being wrong and give my answer...

If I went long/short premarket I would aim to close premarket for my profit. I would avoid being in a position WHEN the market opens because wild swings at open would probably stop me out anyway. So, unless your just in for a gamble then YES, close premarket.

Cheers

Steve

Agree.

Just one important issue. If a company gaps up for some excellent earning report ( like GENZ yesterday ) then the following day the buy order from institutions are in hand to be executed @ VWAP. Under such a circumstances MM will stamp the price down during the day to fill their order. Under such circumstances you dump the stock pre market or immediatley after Open

Is that why GENZ fell so much intra day to day ? Of course YESSSSSSSSSSSSSSS

once they filled they order @ VWAP GENZ inherent strength pushed the price up to close in positive even when DOW fell 160 points.

It is all business to MM .. Not difficult to understand

Grey