rimm active pre-market

K

konviction

rimm up .74 in pre-market, got some at 71.61...i was the sucker tho..i was the highest bidder at 71.61, and then the guy below me was 71.53...i tried to cancle to make my order at 71.53 also, but i was hit at 61 lol :( sadness, oh well. lets see what happens at the open.
 
I am not bustin on you, but yes you were….


Go back in time on a daily chart and look at

Sept 25, 2009 (and the gap the previous day)
Dec 18, 2009
Dec 21, 2009
Feb 19, 2010
Feb 18, 2010
Feb 12, 2010

Draw a horizontal line at $71.43 – then ask yourself why you took a position (I'm assuming long based on your post) .20 cents above that

btw - No need to share your answer


RN
 
I'm no day trader, so I really don't have a clue how to read time/sales and L2, but when I saw that rimm was up 1+pt in pre-market, I wanted in, so when the market opened, it would gap up big, and I'd sell at the open...Didnt really happen. I'd also see green prints of something like this go by..



71.50 700
71.50 100
71.50 100
71.50 600
71.50 4000
71.50 1200
71.50 250
71.50 300
71.50 120

Soon price was at 71.80. I figured all this huge size, for sure price would hold this area. At the open everything just dropped. I dont get it, but whatever.
 
Pre-market trading is a loser's game. You want to wait and see the reaction of potential buyers and sellers to any pre-market gap before trading. When I was very new at trading I bought a put contract for a company that was reporting earnings the next morning. It was a low-cost gamble based on the fact that during the trading day I saw a huge seller come in and dump over a million shares.

Next morning the company beat earnings, beat revenues and issued upside guidance. They were moving up in pre-market and opened gapped up $4/share. As soon as the market opened I sold my put for a $60 or so loss figuring I'd limit my loss, only to watch the stock price fall immediately and drop all day before finding support about $11/share later. My contract would've netted me over $200 had I waited just 5 minutes from the open before reacting.

That was a big lesson for me with regard to either trading pre-market or basing trading decisions on pre-market action without first waiting for the reaction of the crowd to the gap.
 
It's all random but regular hours trading with more participants is a "truer " reflection than Pre market or after market. But Makring premarket highs or lows is very useful when the market opens up
 
Quote from konviction:


At the open everything just dropped. I dont get it, but whatever.
More...

I've followed RIMM closely (RIM here in Canada) for over a year, it being one of the reasons I started day trading (to get even with it back when I still had emotions...I let it eat my lunch once trying to swing trade it).

You are right--there is not necessarily any relation between the premarket and where it opens. There is no doubt an explanation for that but it doesn't matter (to me anyway) since all we really need to know is that it's unpredictable. It's cross listed on Canadian and US exchanges, which may be part of the reason it seems to have a mind of its own sometimes, especially intra-day, and perhaps that could be tested by looking for signs of arbitrage, but life is short. It does however go through long periods where you can seemingly make money e.g., by waiting for it to finish gapping up on premarket orders after the bell, short it with a buy-on-close order (or "flatten-X-minutes-to-close" if your platform supports it) and take the rest of the day off.

BTW RIMM is not the only one; it seems premarket prices for cross-listed stocks in general may be notoriously misleading.
 
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