Call me stupid, but I were short I take some profits on the mother of all gap downs

Discussion in 'Trading' started by Ticketwatcher, Jan 21, 2008.

  1. I got no dog in tommorrow's opening. I daytrade. I am all cash. I traded for twenty years and I have never seen this kind of potential gap down on the open. On August 9 of last year the futures were down 28.60 at the open. I believe that was even more than they were down after the reopening of the markets after 9-11. We are in uncharted territory as trying to figure out what may happen if they open down more than 50. If I were short I would want to take some profits with that kind of gap down. The question is if sellers freeze at the open as the really big holders cannot put a lot up for sale on the open, could there be a short covering rally of some kind at the open and possibly set the low for the day at the open? I have heard longs all day on this forum begging for a rate cut. But those who are short this market have some decisions to make on the open, and the greed of holding out for more is not always a profitable decision. If it were me that was short and the market opens down more than 50, I would look to cover half my postion and wait and see what happens and scale back in on possible strength.
  3. I would think - that big a gap down would trigger even more sell orders somewhere. At least during the first 30 minutes or so.