Seeking Alpha

All About Trends'  Instablog

All About Trends
Send Message
All About Trends is a subscription based newsletter service focused on helping individuals secure consistent profits in the market by trading what they see, not what they think, hear or fear. "Like us" on Facebook at www.facebook.com/AllAboutTrends.net and receive our free report --... More
My company:
All About Trends
My blog:
All About Trends
  • How To Handle Gaps Down 0 comments
    Sep 22, 2011 2:43 PM | about stocks: FOSL, CMG
    IF you are looking to short here, we really don't have a problem with it but try to use strength to do so as you missed the big gap down already (And use trade size risk management). Doesn't mean it can't keep going lower I  just mean that your most opportune time was BEFORE we fell. Keep in mind that you are shorting AFTER a gap.
     
    And that is the issue these days on both sides of the market. Stay tuned as we've been doing a lot of thinking about how to be able to effectively trade these gaps. For example look at the open.  
     
    Suffice it to say the last thing you wanted to do this morning is to short AFTER this morning's gap as you missed a big move already BUT THAT IS WHAT REACTIONARY TYPES DO!  It's really the same thing as going long AFTER a market just gapped up 300 points. Case in point let's look at today's opening on CMG
     
     
     
     
     
    So what's the moral of the short term story here?  Always let the dust settle from the open. 

    To learn more, sign up for our free newsletter and receive our free report -- "How To Outperform 90% Of Wall Street With Just $500 A Week."
     
     
     
     
    Stocks: FOSL, CMG
Back To All About Trends' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • $PKT -- all we ask is 10% a week. 22.16 to $24.52 -- a gain of more than 10% or just under $1,000 -- http://on.fb.me/KBgol5.
    Jul 24, 2012
  • $MLNX -- Bought as it pulled back to support. This morning we sold for a gain of 30.73 points or +48% -- http://on.fb.me/KBgol5.
    Jul 19, 2012
  • $Ebay -- Use the downside spikes to buy names that are setting up nicely without violating support levels -- http://on.fb.me/KBgol5
    Jul 17, 2012
More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.