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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Jeffry K. Smith who wrote (8043)	4/14/1999 6:09:00 AM
From: TATRADER	Read Replies (3) \| Respond to of 59879

Fade the gap means that you watch what the market makers are doing from 9:00-9:30 with the bid and ask on the stock...If they are showing a higher bid and ask, it will probably gap up...I try to keep an eye on that and place a limit sell just below the higher bid price they are showing...Thus when the open occurs, I will get the stock at whatever higher price it opens at..You have to be careful here, because they really monky around with the prices, sometimes showing strength before the open, and then taking the stock down immediately on the open...Usually the best indicator of the opening price takes place about 5 minutes before the open...But then sometimes, they may clear the screens on you...Its a real battle to win this game... Fading the gap is kind of like, being really conservative..Taking the money home, rather than taking a chance on losing it...Recently Wall Street faded the gap on XNET..He took home a couple of points on a $38,000 position(so he says)..He got out(I believe) at 6.00..He did not get all the run, but heh, He made a profitable trade...Usually if a stock holds the gap after the first hour, it shows strength, and the stocks momentum may indeed continue upward for another day or two... Regards, Mark