Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

2:00 reversal period: NQ's looking better the move above 1074, promising. Although the period officially begins at 2:00 I usually expect a change in trend by 1:45 (sometimes 1:30)

.....1:45 – 2:00 EST. This time period puts an end to the mid-day doldrums period. It also serves as a very reliable reversal period for stocks and the general market as a whole. The most important thing to remember about the 1:45 to 2:00 time is that it often marks the precise period when things start heating up again. In other words, the sectors in the market that were exceptionally hot or weak before the mid-day doldrums will often resume their original up or down trends shortly in the following 2:15 to 2:30 reversal period. In fact, the tendency for stocks to reverse between 2:15 – 2:30 is so pronounced at times that many of our trained traders regard the period as the market’s second open. Is this always the case? No. But it happens enough to make a special note of it.

This article originally appeared in Traders' Magazine