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November 25, 2009 7:00 EST
you're watching:
Street Smarts
In-depth interviews with the movers and shakers of the financial world, hosted by Kevin Cook or Jud Pyle.
S&P E-mini traders should observe Jeff Quinto’s two best and three worst times of the day to be in the market.
On this episode of Questions for Quinto, ONN.tv Market Analyst Kevin Cook interviews Jeff Quinto on the best and worst times of the day for traders.
Jeff Quinto of ElectronicFuturesTrader.com reviews the five quintos, or the five times of the trading day. Interesting, the stock index trading day splits into fifths: The opening, the morning, lunch, afternoon, and the close. Why break the day up like this?
Quinto says the opening of the day is the low-probability time where liquidity floods into the market, which is a reason to avoid it. The morning is the most productive time of the day, meaning around 10 a.m. to 12:30 p.m. Traders should be there for the stock index morning. Lunch is a good time to have lunch, as traders are not trading during the hours of 12:30 pm. to 2:15 p.m. When investors trade the afternoon, that period of time is second to the morning. At the close, liquidity leave the market, so traders should avoid the close.
Cook agrees that in his trading days, he looks for morning and afternoon trends. Staying away from the close is necessary because as liquidity leaves, opportunities leave the market as well.
“You need to have your day made before the close,” Quinto says.
Traders should not trade before the holiday, as Quinto says they can take the day before and after Thanksgiving off.
Higher returns with less capital. It’s called leverage and options have it—stocks don’t. Learn more:
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What price would the stock have to rise to or drop to for you to admit you’re wrong and put off your trade?
Enter price you think the stock will move to. You can be bullish or bearish.
How many days do you think it will take the stock to hit your target price?
