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Stock Quote - It's Necessity in Today's Electronically Driven Markets

The technology for getting an up to date stock quote has changed dramatically over the years. The first means of transmitting a stock quote was the ticker tape. Each stock price was transmitted by telegraph to a machine that printed an abbreviation of the stock name, the current price, and trading volume on a paper tape called a ticker tape. This means of updating a stock price lasted from its invention in 1870 until 1960. At that time television and computers came into use to transmit information from the stock markets. The only reminder of the ticker tape today is the stock prices that scroll across the bottom of a television monitor.

Second by second stock quotes are necessary for trading shares in today’s electronically driven markets. Sophisticated stock trading software adds each updated stock price to its database and recalculates its statistical predictions of market movement. Investors who use tried and true methods such as Japanese candlestick charts can enter a quote and let the market tell you what the market will do. There is much more to investing in stock than knowing the most recent stock quote. However, investors buy and sell stocks, they do not just research stocks. The crux of market timing is knowing the most recent price on an investment.

For longer term evaluation of stock performance each stock quote goes into a database to provide a graph of stock price history. Prices are compared with stock price factors such as earnings, capitalization, debt, product performance, product potential, management efficiency, and factors that affect a company’s market sector to make accurate predictions of future stock movement. Knowing a stock inside and out is the best predictor of success in stock market investment or stock market trading. Knowing the details of technical analysis of stocks and technical stock trading is all important to the trader. Technical analysis is based upon second by second stock performance compared to volume and other market indicators but the accurate, timely stock quote is the basis.

Because of the speed at which the markets move today it can be nearly impossible for a day trader to see a stock quote while trading stock online and execute an order to buy stock or sell stock fast enough to get that price. This is why traders place limit orders. Limit orders are instructions to buy a stock at no more than a given price or to sell a stock at no less than a given price. Time in force is important for limit orders. A day order is good for the day when given whereas a good until cancelled order will remain in effect until the buy or sell is executed or a specific stock order is given to cancel. An immediate of cancel order is only good if the buy or sell can be immediately executed. If this is not possible because the stock quote has moved out of range, the order is immediately cancelled. This type of stock order, however, does allow for partial fills. A variation of the immediate or cancel order is a fill or kill order. If complete execution of this order is not possible the entire order is cancelled.


Market Direction:

The extensive whipsaw action in the market over the over the past feww days of trading represent the same indecision as a Doji represents. As with a Doji, the implication is there will be a change of investor sentiment. Today’s lower trading, after a meager attempt to trade positive, was the indication the sellers were back in control. That may be 20/20 hindsight but analyzing what usually appears in market action allows investors to be prepared for the next step of action.

In the case of the DOW, the Stick Sandwich signal illustrated indecision and the trading of yesterday brought the down back down right to the T-line. Today’s trading showed the T-line not acting as support anymore. This was the obvious time to liquidate the weak charts.

Adding short funds, BGZ and TZA to the portfolio is prudent. This pullback is sharp and hard. Watch for the next Candlestick buy signal, this may be a quick profit taking ssession.

Chat session tonight at 8 PM ET. 

Good investing,

The Candlestick Forum Team


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