platform for trading that enables a peek into the market to form some typeof expectation.For example, if a stock like Ciena Corp. (CIEN) has beat expectations by $0.02 with good forward going next quarter, I might expect a $6gap up. If the market were not in a buying mood, I might only see a $2gap up. In a very weak market, the story may not get any gap at all. Iwill watch on a time and sales screen prior to the open the amount ofbuying and selling prior to the open to understand the mood of thetraders on that day and expect the action to mirror what may occur afterthe open. If I see heavy pre-market selling on a nice gap up, I will be looking to short the highs because it is obvious sellers are hitting the marketmore than usual. If I see no selling, then I may assume that the marketis strong and the pullbacks at the open may be shallow. A professionaltrader will keep track of such pre-market activity to set him- or herselfup for concentrating on what is higher percentage, buying the bottoms,or shorting the tops. It all comes from knowing what occurs with keynews stocks in weak, neutral, and strong markets, and mother marketrewards her children who track and know her best.I will generally expect a trend to continue once the market has established one. For example, if I see $4 of general selling off the top of yesterday’s gainers, I will expect the same kind of selling on the next day.Basically, I have good selling in the market, and I will short the highs untilI see a change. The same thing applies for buying. I have found the bestmarkets for the daytrader are the nervous ones where I get $4 of buyingand $4 of selling, which enables me to buy the bottoms and expect goodpotential, and I can reverse at the highs, short the tops, and make thesame potential on the way down. I watch key stocks to note any changesin the market and always keep a close stop when the buying or sellingis not like it has been in subsequent days. The bread and butter for theprofessional trader is to develop methods to find and play the stocks thatare predictable.Generally, the stock market will give me two types of predictability. One is predictability based on value, which means that my key leaders with the most momentum from the day before will sell down a certainamount. For example, in strong markets, I generally see a .75 to 1-pointpullback from the open before the initial climbs and greater pullbacks inweaker markets because of the willingness of traders to take profits fromyesterday’s momentum. I always look for similarities in the amount ofselling and buying with the first few oscillations of the day and keep track
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from day to day. The other type of predictability that I look for and trackis time. Many times, you will see buying and selling come into the market at specific times. A smart trader will always be looking for consistency where profits can be predicted.When the market is uncertain and moving in unpredictable patterns,the only other method I know of to keep profits in your pocket is the indicator method. Indicators are stocks that have the best momentum generally; they move first and they move fast. They are usually popularstocks, such as CSCO, CIEN, and so on. What I have found to be important is to find something in the market that is somewhat the same dayafter day. An indicator will provide a platform of predictability in whichyou can play other trades and maintain a relatively safe environmentwithin the eye of the storm called a changing market.The idea is to find a stock that you can depend on to show you theearly action, sufficient to enable you to trade the stocks that follow it. Forexample, if I have a good news story on a popular stock like CIEN, I cangauge the pre-market buying and selling by the expected action basedon good momentum provided by the news. If CIEN is gapping up $2,$4, or $6, I can begin to understand just what kind of buying I have thattrading day. I also look at the pre-market selling to get an idea of the willingness to take profits. The trading platform is determined by one stockand it simplifies my approach to trading on the day.An indicator stock helps me determine the short-term direction ofthe overall market. This is important because I am not really sure aboutthe direction of the market, and so it is necessary for me to watch andreact. I allow the indicator stock to move up or down sufficiently to tellme just how much buying and selling I have as I attempt to play the earlyoscillations in the market. If the indicator stock moves down at the openmore than I am expecting, then I know I have a weaker day, and sellersare in the market, so my attention will turn to shorting the highs. If myindicator moves up more than expected, I will be looking for other likeminded stocks to go long. The beauty of this system is that I need not doanything until my indicator shows the direction of the market to me. IfI am in a stock that I purchased because my indicator just climbed andthen bottomed and I felt it had enough potential to warrant going long,I will keep a close eye on my indicator to make sure it is still reasonablystrong and climbing. If the market shifts negatively, it impacts the actionof this stock, and I will see that because my indicator will begin to fall,which will enable me time to get out of my trade with reasonable safety.I will generally let my indicator move at least a point to make sure I am
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seeing adequate potential in the market, and I am not simply gettingsmall moves up and down that tend to run up stop losses. The morevolatile and changing the market is, the more important it is to enablethe indicator to move up or down sufficiently to see real buying or selling and not simply little false tops and bottoms.I use the indicator stock along with my core methods to help medetermine how and which stocks to play on a daily basis. I use the coremethods to spot and locate a group of potential plays, such as gainers ordumpers. I then use the indicator stock to help me determine whichdirection the market is going and the amount of potential the market isoffering on that particular day. In addition, I use indicator stocks to helpme determine and modify my entry and exit points of my core plays.Simply put, an indicator stock is a stock that I expect to mirror theaction of the market as a whole. When the overall market is strong, myindicator stock is normally strong. When the market momentum shifts,the indicator stock normally shifts. The beauty about it is the indicatorstock normally shifts direction prior to the overall market and the overall market follows suit. The indicator stock not only leads the overall market, but also the other stocks that I call follower stocks chase after it.Sometimes, this lead-time is a few minutes and other times only a fewseconds.If I am in a stock that followed the indicator stock at the bottom andmy stock started to show signs of pausing or weakened momentum, andif my indicator stock is still showing upward momentum, I may chooseto hold that particular stock a bit longer and play with my profits. A goodpercentage of the time, if I have picked a proper indicator and the overall market is showing good momentum shifts, the stock I am in will pauseor dip a small amount, then continue its upward climb, and finally topout after the indicator stock tops. This may tell me to hold a bit longerto see if the pause is actually a reversal or just a pause.This is about as close to knowing what a stock is about to do as youcan get. No method is 100-percent all the time, but I have found that thisindicator method is fairly reliable in markets that are showing highvolatility. However, it is less effective in sideways markets as well as lowmomentum markets. During these periods of reduced momentum, ittends to reduce the amount of lead-time the indicator stock will give you,and they can at times be so quick, the followers and the leaders changedirection at the same time.Yes, sometimes the indicator stock does not follow suit, and stockstravel not in packs, but in many different directions at once, rendering it
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a useless technique. This is the importance of logging and tracking theeffectiveness of it on a daily basis. When it is not working, don’t use it.When it works, exploit it to the fullest. Markets change; change with it.However, you will never know unless you track its effectiveness, whenit is working and when it is not.
PICKING AN INDICATOR STOCKI gather all the news I can in the pre-market to locate an indicator stock.It is normally the most popular stock that has the highest pre-market volume and has the greatest amount of momentum. I look for stocks thatare gapping up a good percentage, have great stories attached to them,and are being mentioned on CNBC and in the free chat rooms. This iswhere the value of chat rooms can come in handy. If there is tremendoustalk and interest in a particular stock in the chat rooms and on television,it will most likely be a good indicator stock. It is important to note thatwe are looking not just for a high-momentum stock with a good story,we are looking for the best one, because it will be the leader and lead themarket. This is also where constant mention on CNBC comes in handy.If analysts are constantly talking about it, and the pre-market gap andvolume are good, it should become a candidate for your indicator stock.It is normally one of your higher priced stocks.This is a way to help identify the indicator stock before the marketopens, but a possibility exists that you may have picked the wrong stockinitially. You may have picked a strong follower stock and missed the realindicator stock. This is where monitoring your stronger stocks that aregapping up in a single group on your quote screen becomes important.If you see the stock you picked as the indicator stock bottom out and therest of the stocks following it shortly thereafter, then you picked the rightstock. If you see another stock on your screen bottom or top out and theremaining stocks on your screen follow it instead, then you have pickedthe wrong stock. This still gives you plenty of time to re-think your decision. As you see one stock bottom out first, be watchful for the others tobottom out and start picking entry points on the remaining stocks.As we are watching the indicator stock change momentum andclimb, we want to ensure that this momentum shift will be sustainedbefore we start buying the follower stocks. A good rule of thumb is towait until the indicator stock climbs a full point from its bottom to ensurethat the momentum will carry through and not falter. If the indicator
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stock climbs a full point, then it is time to start looking for entries intothe follower stocks. Remember, the follower stocks are all leaders; theyare gapping up also, but they are also identified on your quote screenbecause they meet the criteria for the core plays described in the previous chapter. Mostly gainers, but this can also work on stocks you identify as dumpers. If one of your gainers or dumpers bottom shortly afterthe indicator stock, it becomes a follower stock and tends to follow theindicator stock through its oscillations.This method tends to work better early on in the trading day andbecomes a bit more clouded as the day gets long into the afternoons. Thebest times to use this are in the first two hours after the market opens,but I have found it to be even more accurate in the first 30 minutes.Although it still works later on in the day, it is harder to read and follow.The first 90 minutes is when most of the high value targets can be foundanyway. After that, you are simply playing oscillations and news.I have found that it is a good idea to open up a one-minute chartafter the trading day, beginning with the indicator, and note the time itclimbed, topped, and sold. I will note the times of all the major oscillations. I will then look for the same repeated action with other similarstocks to see which ones lagged behind sufficiently to enable me time toenter not only the long positions, but also the shorts. You will find a basket of stocks this way that will consistently give you plenty of potential,but also, more importantly, time to enter and exit the trades in relativesafety as your indicator moves up and down with the momentum in themarket. I have found that stocks such as CSCO, MSFT, QCOM, and a fewothers move slowly but still offer potential and follow my indicators verywell.
TRENDSIf you combine the core patterns, tops and bottoms calls, upside potential calculations, and the indicator method with overall trends, you arestarting to build a very successful trading program. By trends, I meanrecurring market momentum. For example, for periods of days to manyweeks, the market can exhibit the same type of buying or selling pressure at certain times of the day. In the summer months of 2000, there wasa trend that lasted for almost two months. It was a considerable amountof buying for the first 20 minutes following the opening bell.
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I used this knowledge to add to my core patterns and indicatormethod to help me determine what to expect during that time frame. Iwould see stocks dip a very small amount; the indicator would bottomand then quickly climb. Due to this amount of constant buying pressure,the time lag between the indicator stock and the follower stocks bottoming and reversing course was reduced. This gave me less time to pickout my follower stocks for entries and I reduced the 1-point rule that theindicator must climb before buying the follower stocks.What else this did for me was to take a very close look at the indicator stock as it paused. This overall increased buying pressure wouldcause indicator stocks to pause for a few seconds, and instead of changing direction, they would continue their upward climb. It enabled me theinsight to sit out the first pause and ride the momentum a bit more.As I said, when we are in markets with less momentum or periodswhere the market as a whole is consolidating or basing and moving sideways, this method does not work as well, unless the intra-day swings arestill wide. Even so, during these periods, it does decrease your lag timebetween the indicator and the follower stocks. You increase your riskwhen you do not allow the indicator stock to climb one point and proveto you that the momentum can be sustained, and you can increase thenumber of times you get stopped out of stocks due to early reversals.But these periods of consolidation can be sustained and last for longperiods, forcing you to adapt to current market conditions. I have alwaysbeen of the belief that it is better to sit out market conditions that are notoptimal and to not chase after trades with a low percentage chance ofbeing successful. Each trader must decide for himself the risks he or sheis willing to accept. This is not to say that if the indicator method is notcurrently working that you cannot fall back to the core methods of playing individual stock movements, but it is nice to have the confirmationof the indicator stock tipping you off to the direction of the overall market swings.You can see from the progression of this book that one chapterbuilds upon the next. We have discussed the causes of momentum; thecore patterns and core methods for calculating tops, bottoms, and upsidepotential; and now the indicator stock method. Each one complimentsthe other. The next chapter will take a look at the overall market and theforces that tug and pull on individual stocks. As I said, there are a lot ofmoving parts to building a successful trading program. Take the time tolearn the topic discussed in the next chapter, and you will not be sorry.
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MARKET DYNAMICSIn this chapter, I will discuss the larger forces that have a direct impacton individual stocks. The majority of traders only understand specificcore methods as they apply to individual stocks and do not fully understand the macro forces that tug and pull on each stock as they movethrough their normal momentum swings. Market dynamics involvesmany moving parts and it is recommended that the reader not move ontothese concepts until the core methods are fully understood and successfully practiced. This chapter will give you a look at the hidden forces thatare commonly overlooked by less-experienced traders.
MARKET DYNAMICSBefore we begin our discussion on market dynamics, we need to knowthat we only apply market dynamics to our gainer groups. Dumperstocks live within a world of their own and are not necessarily subject tothe sector and overall market tone. Therefore, when applying marketdynamics to our trading expectations, we must remember that our firstand second-day gainers are the only groups that we have to shift ourthinking on. This makes it easier and also harder.It is easier because we do not have to think too much about adjusting our expectations on our dumper stocks. It makes it harder becausemarket dynamics in our gainer stocks can make our patterns change anddeviate from our expectations in the blink of an eye. We must understandmarket dynamics in full to validate our expectations. Expectations are notof any use to us if they are based on the wrong assumptions in how weexpect the market, in sectors and as a whole, to react.
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Market dynamics is a compilation of all the pressures you are facedwith on a daily basis. It is what causes stocks to climb up to tremendoushighs or lows that sometimes make no sense unless you are aware of allthe pressures and how they are interrelated. The importance of accuratelyunderstanding the pressures within the market is the fact that most ofthe market potential occurs very early. The forces that make up our market dynamics are the overall market, sectors, individual stocks, andtraders.
TWO PHASESWhen a trader begins to consider market dynamics, he or she mustapproach it in two phases. Phase one involves tracking the movementsof groups of stocks with like-mindedness, or the tracking results (thespringboard for consistent profits) will be too confusing to be able to findany predictability. A trader must know what skews the percentages andeliminate them to find the diamonds in the rough. Like-mindednessmeans that given a certain set of circumstances, a particular type ofmomentum will produce similar movements over a short period of time.These predictable movements are what I call historical evidence, which isthe percentages of behavior predictability over time.For example, we are interested in the movements of all good newsstocks that climb over 10-percent at the open over the last few days,weeks, and months. We are particularly interested in information on premarket gaps, pre-market volume, the amount of selling or lack of sellingat the open, the amount of climb off the first bottom, and the potentialoff the next highs and lows as the stock oscillates during the day. Tounderstand the predictability and potential, you must become familiarwith those movements in a dynamic market. This means that you shouldbecome a student of news momentum and how it applies to a negative,neutral, and positive market. You also have the challenge of interpretingnews events and developing reasonable expectations as stocks moveunder the umbrella of our dynamic market.For example, anything unexpected in our market will causeexcellent momentum, both positive and negative. If a stock misses earnings expectations by 10 cents, I will look for a gap down of around20-percent and expect value players to buy off the first or second bottom.When the pattern is in favor, I will simply buy the first up-tick and set astop loss at about a .25 point below the buy price. I expect returns in linewith the average gain for the last week minus .25 or .50 a point as I always
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try to leave room for error. I track these dumpers and as you will findwith all patterns, they will come and go in cycles that repeat. When theyare in favor, they can lead to predictable and dramatic profits for the wisestudent of stock movements.Phase two involves watching the day’s behavior at the open to confirm what you expect. When the market has been consistently selling gainers at the open to the tune of about $1 (depending on the price) and thenrunning up $2 or $3, the expectations become easier and profits more reliable. But on the day that it changes, you must recognize the small nuancesin the market and get out with a small loss. Foolishly holding onto a cyclethat has been established because it has been your bread and butter canbe devastating and you should realize that “all good things come to anend” in our stock market. You must essentially “trade on your toes” themore volatile and changing the stock market is. I have learned to changeso fast that I take few losses and quickly pick up on the next profitablepattern. A good boxer will follow movements so fast that a bob and weavewill be met with a solid right hand to the jaw of the unwary opponent.I like to place my hottest stocks together and allow them to lead meduring the day. If they move up well, I will have a nest of stragglers topick from should I miss the movements of the leaders. If the leaders don’tmove as expected, then I will back off trading until they show me themore reliable potentials both at the bottoms and the tops. Remember, atrader needs room for error, and a trade must justify a stop or two. Themarket may be bobbing and weaving and whacking you on the chin, butif you pay attention, you can anticipate the next move and land a few ofyour own.The winds of change that have blown across our market in the last10 years would be comparable to the move from the Model T to a 747Jetliner. Ten years ago, a single swing of $4 on an $8 stock was the greatpotential of the day. Most recently, we have seen $6 stocks move to $54in a single day, which typifies the difference between now and then, asthe market moves more toward momentum trading, holding stocks fora long period of time is diminishing.The potential for quick profits is bringing in a vast amount oftraders who have no idea how to play momentum, causing wild swingson a daily basis on the latest hot stocks. TV advertisements for selfexecution trading is looking more and more like Lotto commercials hinting at instant wealth and gains far beyond what your traditional mutualfund broker has been able to attain for the vast majority of investors.Wherever instant wealth is promised, you will find the enticement tobring in the gambler instinct within individuals to our stock market.
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As traders treat the business of momentum-investing as gambling,we will see wild swings in stocks and the stock market growing wider,providing more opportunity for those who are true professionals andknow how to ride the swinging pendulum of opportunity. Traders whoare able to establish discipline and rules are cleaning up in this environment and are finding the wild bronco exciting and wild, but alsoextremely profitable.
THE PLAYERSTo understand the basics of stock movements at the macro level, it is necessary to know who is behind the scenes pushing the buy and sell buttons. Although we discussed this topic earlier in the book, it warrants acloser look when moving into the macro discussion of market dynamics. The purpose of this knowledge is to gain an understanding of thetime frame of each trade so a trader can place time horizons on the exitand take normal profits. The bread and butter of a professional momentum player are consistency and a thorough knowledge of the amount ofprofit he or she can normally expect given the circumstances and the various influences propelling the trade.Institutions and hedge funds typically move in and out of stocksslower than the average momentum player, and can be identified by largeblock trades. Another way to identify the large players moving into ahigh-momentum stock is to listen to CNBC or read popular publicationsto spot a consistent interest in particular sectors with money managersand analysts. When such sector momentum is spotted, it puts a longertime horizon on many trades and you can play the swinging momentumfor days or weeks.Some momentum players will move into hot sectors for the longterm, but it is generally more profitable to time the daily swings with thehottest stocks in the sector. It is a good idea to look for undiscoveredcheaper stocks when sector momentum first begins. Many times daytraders will begin to move into cheaper stocks looking for a sympathymove and try to get on the train before it leaves the station. A professionalmomentum trader can make some very dramatic profits in a short periodof time. I group sector stocks together and watch them daily as long asthe momentum is present and they regularly glean profits from the actionprovided by a consistent pattern of similar movements.Daytraders are an important source of momentum and they usuallyhang out in chats on the Internet. Chats are an important source of infor-
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mation and a gauge of how strong the daytrading community is. Likeeverything else in the market, the momentum they provide runs incycles. To gauge the momentum of daytraders, one must watch newsplays during the day and the resulting momentum. Most of the time itwill be an exercise in patience as many daytrading chats will throw outone stock after another in a machine gun style that would require you tobuy 20 stocks just to get three good ones. But with some patience andcareful observation, it will become apparent when the stocks mentionedby many chats begin to get action at the same time, and the momentumcan be incredible.Generally, I will gauge the daytrading community’s momentum bywatching stocks under $10 and seeing how far they run after a news storycomes out, but you must also be aware of the strength of the story. Manytimes when the daytrading community is extremely active, an FDAapproval on a new flavor of toothpaste can send a small company up double in 20 minutes. At other times, the reactions are less than stellar. Themarket has changed dramatically over the last few years in that we areseeing large cap stocks moving like the small daytrading stocks. Theyswing large percentages on a daily basis, but I believe these moves arethe responsibility of our third group of movers and shakers: online traders.In late 1999, I began getting calls from Dow Jones News asking meif we were playing the Internets. I told them that we were not and I didnot know of many daytraders who were. Daytraders at the time did notplay large-priced stocks because most of the 20-percent runs in a fewhours were happening with the cheaper stocks. It is true that the techsin the past have provided action up, until they climbed to a price of over$40 and then they would run out of gas, providing small potential witha few exceptions.Most of the time a daytrader would look for a $2 run on a $4 stockin which he or she could buy 5,000 shares and make a handsome profitof $10K. Making $10K on a $40 stock would require an exceptional moveand more capital invested, which has always been somewhat of a deterrent for the majority of daytraders. Internets have probably changed thatforever and the reason is, in my opinion, the growth of our online amateurs who enter the market and buy stocks ignoring fundamentals usedby the professional investors for years.I believe they are buying with the intention of riding the wave ofthe future for many years and putting their own retirement portfolios onthe line as they play with their new toy, online trading. They are anothersource of momentum that have caused moves of $40 stocks up to $400in a matter of weeks. The exceptional moves have given credence to any
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hype coming down the pipe, and the daytrading community is involvedso that the potential created has had a snowball effect. When all the trading powers line up at the same time, the resulting moves are nothingshort of amazing. Gauging the strength of this group has been more difficult because their actions are becoming much like the daytrading community, but generally they invest small shares in larger stocks. They havebeen holding these stocks for less time than they originally intended, Ibelieve, because they see incredible profits in a short period of time thatthey simply cannot ignore.I believe we now have online traders who are teaching themselvesto move more into the daytraders’ arena, which has caused a greatincrease in momentum potential. I believe the best way to gauge thisgroup is to watch sector moves after the initial news with the latest technology. They seem to be a technology-oriented group causing bio-techs,business-to-business, China-related stocks, fuel cell technology stocks,and Internet-related stocks. They are looking down the road intendingto invest, but are jumping from one hyped stock after another, living ina world somewhere between the daytrader and the investor.When you get all three groups jumping on the same stock or sector, you can have huge potential gains that began with the Internets andhave subsequently moved into China-related stocks, Linux, business-tobusiness, and bio-techs. If a trader suspects he or she is seeing abnormalaction in any one group, the upward potential can last for days, weeks,and even months. I have seen $5 stocks rise to over $50 in one day;QCOM moved up almost $100 in one day. It all begins with news andunusually strong movements. When this occurs, I like to go looking forsympathy trades where stocks might get attention because they are in thesame industry and have not been discovered yet. News is the honey thatdraws the flies, and you must be aware of what types of stories will drawthe three groups together.
THE MOVING PARTSThere are many moving parts to market dynamics. Let’s look at them oneat a time.
THE MARKETThe market is the giver and taker of profits, making up the potential toeach day’s profits or lack thereof. You cannot fight the flow of the mar-
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ket and expect to last very long, and the flow is determined by understanding the two parts, which make up the whole.I like to separate the market into two distinctive areas of movement.One is the day’s action, and the second is the preceding day and days ofaction that I call the undercurrent. Each of the two parts will applyupward or downward pressure on each trade. The strongest influence istoday’s market. I will call it the NOW market. As a professional daytrader,you must know what type of influence you have at the open, during theearly trading, in the afternoon, and at the end, or you will be left out inthe cold. The undercurrent is the WAS market. It is made up of the market dynamics from the previous day or days of trading and can seriouslyimpact your trades. The WAS market is what alerts you to potentialchanges during the day and puts you on guard or in a defensive postureas you actively play the NOW market.The WAS market provides a subtle influence of opportunity eachday because the WAS market usually repeats itself in the following dayof trading. For example, if the momentum trades, under positive momentum, have been going up off the bottoms for the last four days on average of $5 per trade, then I will consider the NOW market able to provideat least $4 of continuing momentum. So if my NOW market looked muchlike my WAS market of the preceding days, I would expect profits to bepotentially around $5 on average until I see something that would indicate a change is in the air.When markets climb, they will build selling pressure, and I will lookfor signs of that occurring as stocks sell down off the tops. For example,if the momentum trades have been selling down off the tops on averageof only $1, I will expect the day’s selling to be $1 on average if the market is going to remain consistent. But when I see the selling greater thanthe preceding days, I will go on alert for a possible change and try to findstocks that are at the highs to consider shorting.Everyday of trading provides opportunity at the bottoms and thetops. The market tends to set up the opportunity by moving stocks intoprofit-taking territory (the highs) or value-buying territory (the lows). Wehave to understand what the market is providing on our plate of tradesor we will miss the opportunities of a consistent market or lose severelyin a yo-yoing market. Each day of trading provides a trader with theopportunity to gather statistics such that each day of trading can be analyzed. Profits can be calculated by what is expected and what in fact isoccurring in real time as the stock quotes flow in your quote window. Sothe NOW market will reflect the undercurrent of the WAS market untilindications prove otherwise and the market takes a turn.
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I have become very adept at spotting those changes, which enablesme to take fast profits and ride the changing momentum. As you followalong and begin to understand these forces, you will be able to changeand adapt quickly also.If the market that WAS has been selling is down consistently for afew days, the selling pressure should be rode as you short the highs. Thereverse is also true as a climbing WAS market would be providing goodprofits by going long on the bottoms. The WAS market really determinesyour aggression as each day brings the same indications and enables youto increase share size and ride the flow of consistency. When the marketbegins to change dramatically, traders become defensive, backing awayfrom trading, and we see less potential in our trades. When tradersbecome confused, the market will begin to get less volume, and fewerswings will occur with the momentum stocks.The basic truth of market dynamics is that with sufficient movement, you will see increased selling pressure as stocks and markets