Why? It was as good as a gapper on Friday and could very well gap Monday.
Now in getting specific it is important to state these warnings:
All must do their own DD. There is a thread for AENG. There are some news releases, possibly posting at YAHOO.
If you want to play gapper uppers, the play IS a short. If you want to play this fast action stuff, you should read the momentum day traders thread and maybe subscribe to a trial of Ken Wolfe's daily output.
Especially with shorting, you must set a stop realizing your buy out price will be above the stop or you must stay real-time so it doesn't run away without your knowing it. (a stop is more disciplined)
Why AENG. This is a 2nd day gainer if it gains Monday.
1) It took off on no news. Read the thread.
2) If there is buying on the second day it will probably close below the high. So if you short near the top, you can pick up a few points.
3) Timing: To quote Ken Wolfe, "2nd day gainers are shorted near the open after a small run up (the bigger the better) to keep the percentage high and then covered at the first pause down. If the market is in a good profit taking mentality, I will many times short at the open. [You of course need an up tick.] This group will be less likely to run unless we are in a very strong market, and a buy off the bottom with a sell of 3/4 pt minimum is advised. If the second day gainers that are not open shorts are currently strong off the bottoms, you can purchase any in this group off a pullback of about 3/4 point to keep the trading percentage high."
BEWARE
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