TTWO was down 20% in trading the night before and more in the AM. guess thats not beaten up enough for ya.
was down 22%+ on premkt and heavely bot, also the open was met by buyin'...cant see the point u are tryin' to makin'. i never said ALL gaps down will keep trendin' lower but odds are the big gaps will do; also there are a lot of parameters to keep in consideration, but i guess that is too hard for u to figure out.
3 out of 5 times, the stocks I've either traded or watched have closed the gap within at least a month.
All you are doing is guessing on a pattern. I dont know if you watch the price action, but stocks gap up/down for a reason. To just pick a stock to short just b/c it gaps up (alot) seems rather risky. But if you've made tens of thousands doing this strategy, then I wont say it doesnt work. I just wouldnt do it.
there's a truth in it; many large caps are usually dumped right off the bat or after they go up 1% or so.
ja, squeezed 1% out of it, but liquidated waay to soon...unfortunately i gave it all back and much more on altr and another couple of stocks...day to forget.
==================== Cash money , in cash markets that sounds fine, selling gap ups. However when you have a strong technical & fundamentals like have seen in oil/gas markets , one could get slaughtered doing that. Some perhaps were frightened when William O Neil mentioned [illustrated ]on his short selling book shorting @50dma area. Actually that seemd to reinforce the idea; not a prediction. Nitro mentioned ES crashing on Jan 20, 2006; oil-gas stocks gapped up Jan 20 ,uptrended for weeks, months. Hope this helps; my comments include swing/position trading, non scalping daytrading