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Strategies & Market Trends : Evaluating Rumors and News Along With T/A and F/A

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To: Wayners who wrote ()9/17/1998 4:48:00 PM
From: Wayners  Read Replies (3) of 141
 
S&P Futures are the easiest to evaluate. For daytraders, when the S&P Futures are off of Fair Value by 5 to 15 points, a lot of companies gap down for no reason. If there is no company specific or sector specific news, this is an excellent opportunity to buy the gap down at the open. The simple evaluation/analysis is that there is no reason for the company's--especially sector leaders to drop 2% or more at the open based solely on S&P Futures. Same thing is true for when S&P Futures are up by 5 to 15 points above Fair Value. There is no good reason for the stocks to gap up. Sell or sell short the gap up.
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