Playing the Gap

Discussion in 'Strategy Building' started by Norm, Feb 13, 2006.

  1. Norm

    Norm

    Other than the obvious important news events prior to opening, does anyone have any advice on how to predict gaps or how to otherwise play openings.

    Norm
     
  2. Fade the gap.
     
  3. Look during pre-mkt at upgrades/downgrades/ earnings/ M/A activity (listed/spooz/nq companies, no illiquid and unpopular issues) wait for a retracement (fade) getting close to or touching 50/100emas half a hour or less after open-- go long/short when momentum picks up and keep your fingers crossed: sometimes (although not very often, as of late) u won't have a chance to see any retracement and have to be ready to buy/sell at high/low prices.

    I know, it won't help much..but it it's all about recognizing reoccurring patterns, gauging sentiment and spotting interest).

    Still, if u play the right issues u'll be right most of the times.

    EDIT: volume is not always a reliable indicator