Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (64516)	12/17/2000 9:09:01 PM
From: Stcgg	Read Replies (3) \| Respond to of 99985

JRI - Gaps....... Rather than quantify a gap, I look at the behavior of the pattern in the first 10-15 minutes.. It's a gap if there is a buying panic (to be sold), however if there is an opening close to the close with a slow, steady uptrend I buy ASAP.. Many explosively bullish gaps never get closed, all you can do is wait for the dip (however slight), as the stock will likely remain strong for the day if it's that bullish.. Generally, 80-95% of the time a gap will close then continue it's run and that's what I wait for to buy in.. >><<

To: JRI who wrote (64516)	12/17/2000 10:06:35 PM
From: Gary Burton	Read Replies (2) \| Respond to of 99985

JRI--on Fri pm after the 2596ish low in the COMP, we did 5 little subwaves up for an A and then tailed off into the close for the B--so we will likely open up on Monday and print at least as high as 2698, the top of the A Wave--closing the intrday gap at 2724ish wouldn't surprise me at all. I would be more inclined to think that the rally had legs if we went past 2800, which I doubt will happen before we take out 2596 first.....Worst thing to happen is that we rally past 2698 at the open then rollover and take out 2596 (Friday's low) before starting up again for the Fed watch---because that will mean we did 5 subwaves down from 3020 and after the relief rally into the Fed decision, we will head down hard again. ps, If you read Cramer's stuff a lot you will recognize that as traders they almost always sell into an Up open and prefer to buy into down opens. Up opens are often hooks created by overnight mkt orders (the 'dumb money' crowd in the first half hour)--Cramer's head trader Harrison is one of the best in the business and he rarely will buy an up open, unless there is startling news out before the bell.----I repeat, watch out for IBM early this week. They are due to join the MSFT et al party and the chart looks downright ugly as now being in a telegraphing mode...rumors are apparently starting to also circulate about GE having to reverse themselves.