Stocks & Commodities V. 25:7 (36-39): Premarket Prediction by Victoria Wang

Stocks & Commodities V. 25:7 (36-39): Premarket Prediction by Victoria Wang
Item# \V25\C07\133WANG.PDF
Availability: In Stock

Product Description

Premarket Prediction by Victoria Wang

Can premarket activity be a powerful predictor as to how underlying stocks will perform during regular market hours? Will this knowledge be advantageous to traders?

Premarket activity refers to stocks that undergo active trading before the US market opens — that is, before 9:30 ET. This activity may be caused by earning announcements from either before the market opens or after yesterday’s close, upgrading or downgrading by analysts, or other news that may influence the stocks’ movement. After analyzing about a half-year’s data, we are beginning to uncover the connections between premarket activity and stock trends during regular trading hours.


The first step in the analysis is data collection. The premarket data was collected from the NASDAQ website from February 1, 2006, to July 31, 2006. We wrote a program that fetched the data from the website every morning around 9:25 ET. This data includes the current price before the market opens, yesterday’s closing price, and the premarket trading volume. Using this data, we were able to calculate the percentage change of the current price relative to yesterday’s close, referred to as percent change. We will discuss the effects of these data on the underlying stocks’ movements during regular trading hours. Trading activity involves entering a position at the open price and exiting the position at the close of the day; therefore, this is a daytrading system. For short positions, we are limited to stocks with a price above $6.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at users can view the S&C Digital Edition in the subscriber's section on

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order