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Replies to #43819 on lowtrade

lowtrade

10/21/14 8:56 PM

#43821 RE: BlindSquirrelFindsNuts #43819

Indexes are made up of the cream stocks. So HFT houses trade index members, causing the indexes to move. Your guys are probably not on the attack list, as they are probably not index stocks. This is my analysis as to what happens with indexes. Others may disagree and say index trading causes the action. It's a which came first thing, the chicken or the egg. I say the egg. LOL But those stocks not on indexes are more likely to trade more freely then those that are. (less all boats, more present sentiment driven)

All indexes considered, the Russell 2000 should be the best to trade right now. It had it's 10% correction, is small cap, (larger gains) and individual stocks are not cream. So what's traded there (the action) should be retail backed, not HFT backed, on strong overall market sentiment. Basically saying the one's which move first, are probably the ones retail are hottest behind. (longest over due in their minds)

In the list I just posted, 6 of the 20 are hot, the others may follow if the market continues it's volatility. But hot ones will probably remain hotter then most. As retail change in sentiment is strongest there. And sentiment eventually changes phycology. So investment growth of a down trend bounce continues the new trend.

Just trying to use some logic, in an illogical time. The Russell come back was expected the most, of all indexes and the first movers, probably have the best odds for continuation.

If anyone decides to try those 6. Remember the single bottom bounce video and trade accordingly.

Trade at your own risk, as always.