SI
SI
discoversearch

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


To: Nazbuster who wrote (11688)7/18/1998 11:59:00 PM
From: Instock  Respond to of 120523
 
Daniel: Liked your post a lot! I printed it out for future reference, as your post puts the subject of GAPS very plain and simple to follow and understand.
All types of GAPS you mentioned can only be decided on After the fact. Of coarse, in mid stream you will start getting an Idea for which ones it might be or not.

There IS another type of GAP. It is called the " Business Week effect" GAP. Like the name?
It is caused by Business Week's " Inside Wall Street " mentions that drive the price up, usually GAP up the lower priced smaller float stocks. More often then not, The Friday Gap up is sometimes followed by a smaller Gap up on monday, but is not allways needed for a good short position anyway.
You want to find one that it up large amount on heavy volume.
quote.yahoo.com
( That is 18.25% gain Friday on top of a 12.30% gain on Thursdays
news, fridays volume was apx. 14 times normal )

Sometimes they do keep running up on monday, in which case a Long Position can be very profitable. Regardless of whether or not the stock keeps going up on Monday, even tuesday, it is HIGHLY LIKELY to drop BIG on profit taking and short selling within a few days at most.

If the stock does not fill the gap, but only comes close to filling the GAp, there is still a very nice profit from the short sell and a even greater one if you are quick enough to play it LONG
and Short.

All of the above IMO.

Check this one out. We will see what it does.
exchange2000.com

Instock



To: Nazbuster who wrote (11688)7/19/1998 11:55:00 AM
From: Judy  Read Replies (1) | Respond to of 120523
 
To understand the nature of the gaps, one should know the underlying event that caused the gap. This is useful later for trading, as it gives insight on the likelihood of the gap filling when the stock/sector/market comes under pressure. Not all gaps fill.

Examine DELL's one-year chart, I believe all four of Elder's gaps occurred.