Experiment A Little
Look A Stock's Opening and Closing Power
All rights reserved (C) 2005 William Schmidt Ph.D.
"Opening Power" and "Closing Power" are trade-marked terms
invented and used by Tiger Software.
Much a stock's move may come from higher opening or lower openings.
It is worth while to see which way the market makers or specialists (if
it is a NYSE or ASE stock) are pushing the stock. It is, in fact, unusual
for a stock to go very long with the overnight move (Opening Power)
and action during the trading day (Closing Power) both moving in the
same direction. When they do, watch out! That's when big moves take
place.
We show Opening Power as a green line and Closing Power as a blue
line. In the chart below, you can see that the Opening and Closing Powers
have recently both turned up again. That is bullish. Try it with your
stocks.
Use these to time your purchase. When Openings are weak and Closing
strong, buy at the Opening. This has been true for UBS. But when Openings
are Strong and Closing Power is weak, sell into the early strength of the
opening when the overall price trend is determined to no longer be up.
