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Strategies & Market Trends : Three Amigos Stock Thread

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To: theshaker who wrote (17336)	11/10/1999 1:19:00 AM
From: Ken W	Read Replies (1) of 29382

Doug, As it is late Sergio has already gone to bed. I'm just getting ready to turn in, but will take a stab at the gap filling explaination. Using ANTX as the example. For a long time ANTX formed a base then slipped below that base on lower and lower volume. When the recent news came out the market, of course, knew ahead of time. Thus the MM gapped the stock up due to the nature of the news. When a stock makes a fairly parabolic move up from that gap then once the news has settled the price of the stock will almost always go back to fill in that gap created by the MM moving the stock up. What Sergio means by ANTX has not filled the gap yet is just that, it must go back down to that base, retest it as support and then begin to move back up again. A good way to short term trade such a move on the day of the gap is to wait for the price to fill part of the gap intraday, buy and then sell just under the gapped up price. ie; 3 close previous day, open at 4, buy at 3 1/8, sell at 3 7/8....of course you need a good deal of volume to pull off such a trade and it generally only works on a good news day. Ken

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