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Opening Trade Deviation Limits  
For all Intra-day Investment Tables safety limits are provided in the form of percentages and their ranges. Their purpose is to signal the Investor of a possible break in trend for individual security(s) within their respective tables. These safety limits are further referred to as Opening Trade Deviation Limits.
 

Part of a Day Traders job, besides selecting a potentially winning group of stocks for the day prior to Market open, is identifying and effectively eliminating potential problem trades which may present themselves at the very onset of regular hours trade. The limits listed below are cautionary limits, with the intent to warn Investors of potential adverse price movement when a security's opening valuation falls within the limit ranges. The limits apply to each security's individual opening valuation.

The values for all limits below, and their ranges, are based on the percent deviation between a security's prior session close and current opening trade, and are calculated at market open based on the market's activity prior to open. The values shown are base values, and may fluctuate from day to day due to current market conditions.

Investors may easily view opening valuations for all Individual stocks within the tables through the use of real time tickers or quote streamers offered by most online brokerages. A list of current recommendations is provided at the base of each iTables screen which can easily be pasted to real-time quote modules.

 
LONG Position Intra-day

For Securities within the LONG position Investment Tables, limits are set up as follows:

  • Omit Limit 1 - (base range 3% to 5%) In some cases a security may open higher due to built-up momentum during its prior session, and general pre-market activity (this may apply even if the security does not trade in pre-market), and as a result a security may, with its opening valuation, have already achieved most, if not all, of its intra-day gain. When this happens a security may very well spend the rest of the day flat, with minor fluctuations up or down. In such case the security may be omitted from the current session due to the uncertainty exhibited by the opening trade valuation. Though the prior may not always be the case, it may still be a good idea to omit the security, especially if it is the only one within its table that exhibits this behavior.
     
  • Return Limit 1 - (base range 5% to 10%) Same idea as above, but with a more significant deviation at open. This range usually indicates a possible reversal for the Intra-day trend. For example, a security may have such upward momentum during its prior session (and pre-market - where the market's own momentum may further help to propel the security at open), and as a result the opening trade is substantially higher, suggesting that it has, at open, achieved a 'peek intra-day gain'. As a result, it may start to lose some of that 'explosive opening gain' during the current session, therefore a SHORT position would be desired in place of the indicated LONG position. To further alert investors to watch for these opening valuations red and green arrows are provided within the MarketMeter Timing Indicators.
     
  • Omit Limit 2 - (base range 10% + ) Same as Omit Limit 1, but for more severe opening valuations. When a security's current opening to prior close valuation is in excess of this value, Investors are encouraged to omit this security for the current session. Securities that exhibit this behavior are rare, and are usually subject to intense media.
     
  • Return Limit 2 - reserved.
 
SHORT Position Intra-day

The above limits and their ranges are for securities listed within the Intra-day LONG position Investment Tables. For securities listed in the SHORT position Investment Tables, the same will apply but with negative base values as follows:

  • Omit Limit 1 - (base range -3% to -5%) In some cases a security may open significantly lower due to built-up downward pressure for both the security and market during the prior session and pre-market trade (this may apply even if the security does not trade in pre-market), and based on its own momentum and market momentum at open, it may have already achieve most, if not all, of its intra-day 'loss'. This can happen when the security's momentum is matched with the market's momentum, and as a result the security may spend the rest of the day flat, with minor fluctuations up or down. In such case the security may be omitted from the current session due to the uncertainty exhibited by the opening trade valuation. As mentioned above, though this may not always be the case, it may still be a good idea to omit the security, especially if it is the only one within its table that exhibits this behavior.
     
  • Return Limit 1 - (base range -5% to -10%) Same idea as above, but with a more significant deviation at open. This range usually indicates a possible reversal for the Intra-day trend. For example, a security may have such downward pressure built up during its prior session (and pre-market) and as a result opens substantially lower the following morning, indicating that the security has, at open, possibly hit a 'hard intra-day bottom'. As a result, it may start to recover and move up during the current session, therefore a LONG position would be desired in place of the indicated SHORT position. To further alert investors to watch for these opening valuations red and green arrows are provided within the MarketMeter Timing Indicators.
     
  • Omit Limit 2 - (base range -10% and lower) Same as Omit Limit 1, but a more severe range. When a security's current opening to prior close valuation is in excess of this value (lower), Investors are encouraged to omit this security for the current session.
     
  • Return Limit 2 - reserved.

The above limits are posted within the Investment Tables, and are updated once each day right after market open (usually by 9:35 AM ET).