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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: LastShadow who wrote (10613)	6/24/1998 10:44:00 PM
From: Leland Charon	Read Replies (2) \| Respond to of 120523

LastShadow, Do you find that this works pretty well? Also could you give me an example of the last time you used it. Thanks, Leland

To: LastShadow who wrote (10613)	6/24/1998 11:17:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

GAPS.. RMBS is the best type of gap I like to play. Simply because if a stock gaps up TWICE in 2 consecutive days you can assume the following: 1) Stock is in a strong acceleration with buyers coming in and the continuation of the gap is an extremely BULLISH indication that upward trend is strong and will continue. If you check back in the last 6 months or so there are stocks that have gapped up for 2-3 consecutive days (stocks that get FDA approval, stocks that have news on major product developments, particularly good earnings reports, interesting drug development) 2) I tend to pay attention to gaps when the market sentiment in general is excellent and buyers are everywhere. 3) I get in more quickly on a continuation gap (2nd day) because I usually miss out if I don't. 4) Gaps have to go hand in hand with a particularly good technical chart for me to get in. I liked today's gap in RMBS because it was really nicely over the 50 day moving average value and even the 21 and 10 day moving average. Gaps that include bouncing off the 50 or 21 day moving average are the most profitable. 5) The bigger the gap, the better. It's more exciting and profitable to trade large gaps than small gaps. 6) I don't usually hold the stock more than 1 hour the day of the continuation gap. 7) Another thing to do that would have worked well with CMCSK today. If you feel the stock is a bit overbought OR if the gap open is particularly high on a tech stock or large cap.. you could buy puts on the stock and wait for the gap to fill in.