CHAPTER 14
Globex, Premarket, Postmarket, and Overnight Market
The same price action techniques apply in all markets at any time of the day or night. There are so many sophisticated international traders that many markets are traded 24 hours a day. The premarket extremes are often targets that get tested during the day session, but it is not necessary to look at Globex prices when trading the day session since very little is gained and the day session price action will give adequate signals. Many traders use the Globex chart throughout the day when they are day trading, and that is perfectly reasonable. I prefer the day session chart, since trend lines and trend channel lines that extend over two or more days are very reliable on the day session charts, and important to my trading.
When a stock has an earnings report after the close, some traders try to trade them because the big moves appear to offer great profit potential, but these moves are very difficult to scalp and most traders should not attempt it. The moves are frequently too fast to read and allow proper order placement, have big slippage on stop entries, have pullbacks that are large, and have reversals, and the market often suddenly stops moving as soon as you understand what it has been doing.
FIGURE 14.1 Trading after the Close
As shown in Figure 14.1, Dell had an earnings report after the close and appeared to ...
