Are there less opportunities in this market into the close for traders?

A reader asked:

Hello Mike.

I have been involved in trading for a number of years and follow your youtube channel with interest.

A quick query when you have some time.

Going back a few years, the main ‘focus’ for trading (mainly using the tape) was on the open and the first hour of trading. Then also the last hour before the close.

I’m just wondering if this is still the case in today’s markets.  The open is still obviously important, but with regards to the last hour before the close, is this still a viable time to trade in your view?

I seem to be getting more of a ‘lunch time’ vibe in the final hour, where it seems that the main move has happened early on and now we are in sideways chop with not much in the way of ‘tape signals’ to guide you if you want to trade in the last hour before the close.

Would be interested in your view on this when you have some time.

@MikeBellafiore

I would agree with your observation for tape readers/scalpers.  On the open offers the best opportunity to scalp as there is more volatility.  I do notice our best scalpers profiting midday, trading the stocks most In Play.  I do notice less of this type of trading into close, but still opportunity for the best tape readers.  Overall, there does appear to me to be less opportunity to tape read and scalp into the close than in the past.

There are different strategies that work well into the close that traders gravitate towards.  There are positions to be managed for swing traders.  There is stock movement to be watched for setups for the next trading session.

You make an important observation for your trading.  You do an excellent job seeing the different business plans you might build for the different trading time frames- open, midday, close.

As always, I welcome your questions/feedback- [email protected]

*no relevant positions

 

 

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