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On Friday (March 27), I mentioned (to some of the daytraders I work with) the "gift" that the gap gave to Spoos (S&P futures) sellers. For the past half year, daytraders have received this occasional gift which I call the "Gap & Snap" trade (when it goes down ... you can substitute other words that rhyme with snap, of course :o) and the "Gap & Clap" trade (when it goes up). There's a quick gap at the open, a retest of the highs (which fails), and a powerful retreat in the opposite direction. When this is timed to EWave projections, it can make a powerful position trade, too. The trade does not always work. When it fails, it usually fails spectacularly, which means you should take an SAR (sell and reverse) approach as a daytrader. Learn to recognize this trade on the futures (spoos ... S&P futures ... or doos ... the Dow Futures). For now, at least, it's a great one. My website is at concentric.net ... Here's the chart. concentric.net |
