Trading morning breakouts

[hedron]

I notice every so often that a really excited stock can form a handle in pre-market and breakout 50 cents to maybe a dollar right after the bell. I'm probably not the first to recognize this pattern, but I'm curious as to why it happens. Anyone have any theory?

It happened today with ZNGA.

 

[wackypete2]

Usually due to some news that's out on the company, either quarterly numbers, or some announcement that could affect the company's earnings. There are several methods based on these types of opening range breakouts. Try asking in this thread. You may get a better response:
http://www.trade2win.com/boards/trading-journals/73472-breakout-trading-using-time-sales.html

Peter

 

[rafla]

Even S&P use to have some statistical interest at midnight (check: Strategy images & equity curves) but I think that "morningdip" has lost its meaning. At least some years ago there use to be sort of dip at 8-12 minutes after market open in european markets. I'm not checked it lately or against US markets, any indication any more?

 

[wackypete2]

WTF? Why are my posts getting copied all of a sudden? There's a few of these spammers currently operating here.

Peter

 

[Lightning McQueen]

WTF? Why are my posts getting copied all of a sudden? There's a few of these spammers currently operating here.

Peter

haha they either don't like you mate, or it would seem these spammers are a bit thick or unlucky to be picking on you, i don't know which

 

[wackypete2]

haha they either don't like you mate, or it would seem these spammers are a bit thick or unlucky to be picking on you, i don't know which

Well, I don't like spammers, so if they don't like me then we'll call it even

Peter