Analyzing Your List Of Internet Day Trades (part 1)

A friend of mine once made a composite chart of the principal active internet day trades, for the purpose of ascertaining which, in its daily fluctuations, followed the course of the general market most accurately.

He found Union Pacific was what might be called the market backbone or leader in internet day trades, while the others, especially Reading Railroad, frequently showed erratic tendencies, running up or down, more or less contrary to the general trend. Of all the issues under inspection, none possessed the all-around steadiness and general desirability for trading purposes displayed by Union Pacific.

But the tape reader, even if he internet day trades exclusively in one stock, cannot close his eyes to what is going on in others. Frequent opportunities occur elsewhere. In proof of this, take the market in the early fall of 1907: Union Pacific was the leader throughout the rise from below 150 to l67 5/8. For three or four days before this advance culminated, heavy selling occurred in Reading, St. Paul, Copper, Steel and Smelters, under cover of the strength in Union.

This made the turning point in the internet day trades market as clear as daylight. One had only to go short of Reading and await the break, or he could have played Union with a close stop, knowing that the whole market would collapse as soon as Union turned downward. When the liquidation in other internet day trades were completed, Union stopped advancing, the supporting orders were withdrawn, and the "pre-election break" took place.

This amounted to over a 20 point decline in Union internet day trades, with proportionate declines in the rest of the groups’ list. The operator who was watching only Union would have been surprised at this; but had he viewed the whole internet day trades market he must have seen what was coming. Knowing the point of distribution, he would be on the lookout for the accumulation that must follow, or at least the level where support would be forthcoming. Had he been expert enough to detect this, quick money could have been made on the subsequent rally as well.

While certain internet day trades constitute the backbone or leadership position, this important member is only one part of the market body that, after all, is very like the physical structure of a human being.

Suppose Union Pacific internet day trades are strong and advancing. Suddenly New York Central develops an attack of weakness; Consolidated Gas starts a decline; American Ice becomes nauseatingly weak; Southern Railway and Great Western follow suit. There may be nothing the matter with the "leader," but its strength will be affected by weakness among all the others.

A bad break may come in Brooklyn Rapid Transit, occasioned by a political attack, or other purely local influence. This cannot possibly affect the business of the large transportation internet day trades or transcontinentals, yet St. Paul, Union, and Reading decline as much as B. R. T. A person whose finger is crushed will sometimes faint from the shock to his nervous system, although the injured member will not affect the other members or functions of the body.