Recent Gaps

Discussion in 'Trading' started by Rigel, May 12, 2002.

  1. Rigel


    There seems to be a new crocodile, the gap, lurking in the shallow, muddy waters of the market lately. One that likes to rear it's ugly head from time to time and remove a leg or some other valuable body part. It really seems to like to go for the cojones (like all good markets do! LOL) and I'm sure quite a few traders are speaking in a higher pitched voice today than they were a few weeks ago. Here are some assumptions that can be made about the situation. Don't know if they're true or not.
    1. There has been a significant net loss amongst EliteTraders in the last month.
    2. There has been a significantly increased number of large gaps lately in both individual equities and indices. Of course, the activity causing it occurs after-hours.
    3. Nothing happens by accident in the markets. Someone is causing the gaps, they are not random or caused by general market conditions.
    4. The market is a zero-sum game. Since many seem to be loosing lately, there must be some who are winning. As a general rule, when an individual or group is in the act of employing a successeful strategy the public, news media at large will hear nary a peep about it till after the fact (if it's legal). It will take place quietly.
    I don't know about you but when 60,000,000 shares on Tuesday say that an equity is worth $20 and then on Wednesday morning it appears as though 50,000 shares after -hours have decided the shares are really worth $12, or vice-versa somebody has GOT to be cleaning up, to balance out all the ones that have been toasted to a nice golden brown, since this is a zero sum game.
  2. On what do you base this assumption. I was under the impression that we are all EliteTraders on this board rather than MerelyAverageTraders.:)
  3. My discussions with my close circle of experienced and beloved Trading Brethren suggest that the last month or two has seen either small net gains or net losses for the majority, fwiw...
  4. Rigel


    On the general tone. If I am mistaken I am sure I can count on my beloved trading bretheren to set me straight, or at least to ponder it on their own.
  5. On a side note, I vote we drop all this cheesy twelfth century hear ye hear ye "brethren" crap.

    So I'm nitpicking, I don't care. What are we, the knights of the round table?

    Maybe if enough people agree w/ me we can create an environment of brute force persuasion...

  6. nitro


    Dearest brother darkhorse,

    nitro :cool:
  7. Dearest Brother Darkhouse,

    We are indeed Knights, duelling with our minds and capital against Evil Forces...

  8. nitro


    Ehh, that's dark_HORSE_ candle...

    But maybe darkhorse lives in a darkhouse...?


  9. wasn't darkhouse the latest stephen king novel?

    I don't know about you homes, but I ain't smokin' your brand. For me, trading is a way to make a nice living in a way that I enjoy. Period. Not much different than writing comic strips or selling shampoo.

    And the last time I checked, mutual funds and big institutionals hadn't quite made it into the "evil" category...