Home > Lessons from the trading floor > Never a dull moment in the markets…

Never a dull moment in the markets…

September 28, 2009 Leave a comment Go to comments

Even on a light volume day like today, we have some activity worthy to of a mention. Monday continue to produce some nice Merger Arbitrage opportunities as companies have found it easier and safer to finance acquisitions. Today we had a couple of $6bn deals mentioned XRX buying ACS and ABT buying the US division of Solvay. XRX traded down ACS traded up, as merger arbitrage funds took positions. For more information on Merger Arbitrage go to the following link https://keystonetrading.wordpress.com/mergers-and-acquisitions/ the markets have really started to show signs that we will be having more activity not less.

In addition today was worth mentioning that the equity markets bounced off the 20ma on the daily (see chart of SPY http://twitpic.com/jik3i ). The volume on this bounce may not have been very high, but it was nice consistence order flow to the buy side. So despite low volume, our traders were able to make money since the trend was much cleaner in many of the stocks and sectors we normally trade. The NASDAQ led the way higher with stocks in the SMH strong from the start. We also had the financial help out the market especially at the end of the day. As an intra day trader you need to capitalize when the sectors and stocks you trade are on the move. Friday was a day to sit on hands, today was a day to get involved.

At Keystone we have created a community of traders that is geared to maximize opportunities, by pointing out trades and days that have an edge, and maybe more importantly pointing out days or trades that HAVE NO edge. Stay away from the NO EDGE trades; they will burn a whole in your pocket as well as your psyche.

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  1. September 28, 2009 at 5:39 pm

    What an awesome post! So many good points. Perhaps the best one is the trading community that has developed at Keystone. I know that I prosper from the team work and commorodity.

    Debbie

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