DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Dominick who wrote (8098)	4/29/2000 3:18:00 PM
From: OZ	Read Replies (1) of 18137

Trader VicII "Principles of Professional Speculation" page 231 states that in the first 10 to 15 minutes gap reversals occur 95% of time. Though gaps do tend to want to close, one must remember that Victor Sperandeo (one of my favorite writer/traders) is not a daytrader, but more of an intermediate term position trader. He is not sitting there watching all the gaps every morning. Though, additional discretion is used on gap up days. Usually, the sell button gets hit on large gap up days (unloading the overnights) and taking the money off the table. Then after a few minutes (as you said) buying may begin again. As a matter of fact, after what seems like an exhaustion gap on the NAS, they will short everything right out of the gate once the stocks make lows. On the contrary, they pretty much buy every high being set on a gap down day. By the way, I do not think that gap reversals occur 95% of the time lately. If the odds were that high, one could just basket sell the gap seconds before the bell for HUGE profits on a 95% accuracy basis and nothing is ever that easy. OZ

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