Hi all, I learned a lot today and had a ton of fun doing it. Today, I decided to test my "fading the gap" knowledge which I accquired from this thread . My test subject for today was ADSK. Initially, I was just going to watch how the stock would react to a full gap down but we all know that'll never happen. It was a text book example, it dropped towards the direction of the gap and climbed back up like a rocket to fill the gap. Not totally trusting my knowledge on this kind of fast and furious trading, I just played scalp in small lots. I didn't make any money but it was fun none the less. I am not going to post the time & sales as it was mainly a scalping session and I had over 38 executions. But at the end of the day I was down -$4.00 after the commisions. I'm starting to like this "gap" thingy .
I seem to be the only intraday trend trader on here. You trade gap reversals. PETM and RF were two with strong volume into the reversal.
OSTK for the gap fade ..traded the intrinsic value of the 70 puts (in the money) for leverage. OSTK didn't do quite what i wanted and shook me out a bit early .. but profitable.. 9:31:24 Buy to Open 15 +QKTMN at 5.40 on EBS (10 traded @ 5.4000) Executed 9:38:04 Buy to Open 10 +QKTMN at 5.00 on EBS (10 traded @ 5.0000) Executed 9:38:07 Buy to Open 10 +QKTMN at 5.00 on EBS (10 traded @ 5.0000) Executed 9:45:39 Sell to Close 10 +QKTMN at 5.30 on EBS (10 traded @ 5.3000) Executed 9:47:48 Sell to Close 10 +QKTMN at 5.40 on EBS (10 traded @ 5.4000) Executed 9:52:04 Sell to Close 10 +QKTMN at 5.50 on EBS (10 traded @ 5.5000) Executed --------------------------------------- TASR for the snap back into the channel 9:32:49 Buy 1000 TASR at 18.37 on ARCA (1000 traded @ 18.3550) Executed 9:34:04 Sell 1000 TASR at 18.85 on ARCA (1000 traded @ 18.8500) Executed
sobemark, thank you for sharing your counter trend trades, and method. it has sparked some interest and ideas for me. was there a reason you did not follow and fade YHOO on todays gap up? i guess this leads me to the question: how to you screen for your issues? do you have a mechanical process to filter the issues prior to open, or do you scan the premarket news and prepare? also, are you running a news service so that you know where the action might be during the day, or to put it simply, how do you generate your stocks for potential counter trades during the market hours? do you have a full on step by step procedure, or do you simply scan via your own personal powers? thanks for taking the time here on this thread. PatrickQ
OSTK seemed like it would wiggle more (and it did $2.00 vs YHOO $.70) .. scanning the news and knowing what is going on ..and most importantly where these stocks are coming from, support/resistance, etc. yes, i run a news service .. but rarely trade on events .. as for market hour trades ... (refer back to the AAPL trade from 1/11 .. i also posted the chart for that trade yesterday)
Get Prophet.net and use the ProphetScan feature to pull up the gappers. You can use the gap filters or just do price and volume scan and scroll through the mini charts set at 2day, until you see the gap stocks.