Opening Drive Flashcards
What percentage should a stock be gapping up or down to be considered for an opening drive trade
+/- 3%
If this is going to be a short play for the ORB, how should the after hours and premarket price action be behaving?
They should both be trending down.
How should the price be positioned in regards to key levels?
It should be below a key level or longer term technical level.
What major catalyst should be affecting a stock being considered for an ORB?
Unexpected news catalyst.
What aspect of volume should be affecting a stock that is being considered for an ORB play?
Elevated RVOL
If the street is not happy with an aquisition, or thinks the aquisition is risky how does this affect a stock?
Negatively, this can cause a major sell off.
How does high institutional ownership affect a stock with negative news?
Dramatically, institutions will need MULTIPLE DAYS to sell off their shares of stock, as their positions are Very Large.
Above what number is RVOL considered high?
3
What ETF indicates the key level of strength or weakness in the semiconductor sector
SMH
What other indicator should you check before trading a particular stock in a specific sector?
Other stocks in that sector, to see how they are behaving (strong or weak)
If you are trading a stock in the semi conductor sector to the down side and the SMH is in a strongly moving uptrend, what effect might this have on the stock you are trading?
It could cause a stock moving to the down side on negative news etc, to have a significant bounce, as influenced by the SMH.
What does a chart with no bounces and a long trending move to the downside represent?
A weak stock, there are no bounces, no buying is taking place in this trend.
If you are planning to trade a stock that you expect a big move from, where should you look for support or resistance
At the next KEY Support or Resistance Level, Visible on the Daily chart.
If a stock breaks a 30 min support level premarket a few minutes before the open, is this a potential entry? True or False?
True this can be a potential entry if all variables line up.
What is happening when the bid is dropping?
No buying / bidders. No support at this price point.