NAS gaps

Discussion in 'Trading' started by wb5983, Oct 17, 2002.

  1. wb5983

    wb5983

    In the 4 years I've been trading I've never seen NAS100 gap 30 points a day 3 days in a row. It's rare to get 1 30 point gap much less 3 in a row. An anomaly or some meaning?
     
  2. m22au

    m22au

    It means that

    (1) a lot of people have been caught short since October 9.

    (2) Portfolio managers will underperform if they miss the move, so they are panic-buying

    The move since October 9 needs to be put into the context of the erosion in stock prices seen since May
     
  3. Ditch

    Ditch

    My guess is that there's people with deep pockets out there that know things beforehand.
     
  4. ddefina

    ddefina

    For more than a month the 1st 30 minutes of trading has rarely intersected with the prior days' close. It sucks, especially if you hold overnight (which I don't anymore) because the risk is amplified, and it takes away the profit potential of the days' follow through since few of these gaps close, and most stay in small ranges.

    :confused: