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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: Dave Shares who wrote (12909)	8/11/1998 9:56:00 PM
From: LastShadow	Respond to of 120523

Gaps and things LBOR was a nice standard gap play at just taking the opening hours high at 29. CKFR shouldn't have been played as a gap, but rather as an ascending triangle that formed all morning- a little risky in that it could have tanked as well as jumped. The thing that bothers me about CKFR is the huge spreads- generally running 50 cents when the reversal moves are made. Better stocks to practice (real or paper) the gap plays are tickers like GM, F or C - look at the last five days (5 min chart) - you don't even have to watch the charts practically if you set standard gap plays at 10:15 am. They have a lot of volume, a measurable change in the tick and time to enter and exit profitably. On huge down days, and until one is proficient, stick with the large caps. Generally one would look for a buy at a recovery of 2/3rds the morning drop, or a short at 2/3rds the morning (until 10:15-10:30) climb. Although I would point out that one should be comfortable and confident with standard gap plays before using modified gaps, as the chart pattern interpretation is not the same - especially in market wide up or down days. AKLM - this one showed yup on two nets and three TA scans, although the chart is not terribly impressive - worth watching though. lastshadow