Today's exhaustion gap--Air Transport Services (ATSG)

Jul. 22, 2011 2:33 PM ETATSG
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Portfolio Strategy, Long/Short Equity, Special Situations

Contributor Since 2008

Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably curious mind, she began trading stocks, futures, and options in order to find the holy grail to market success. She's discovered to her immense satisfaction that not only is there one way to succeed but many. Combining her love of cooking with the stock market, she's devised recipes for investment success designed to please the palate of most investors. Dr. Kris currently manages a private equity long/short portfolio and writes of her current research projects that appear on her website, StockMarketCookBook.com. Her most exciting project is applying market timing models to Modern Portfolio Theory to not only give greater returns but at substantially lower levels of risk. (See PortfolioPreserver.com for further information.)

Today's chart of Air Transport Services, ATSG is showing a classic exhaustion gap pattern. (Scroll down for more info on this pattern.) The stock gapped down and is now trading well off its intraday low on over seven times normal volume. Traders who don't mind taking a little risk (especially going into the weekend with all of the possible headline risk out there), buying this stock could result in a very nice Monday morning return. There are options on the stock but they are thinly traded, so beware.



Disclaimer: I just went long this stock with a small position.

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