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Gap Fill Signals Buy For Key Stocks

The markets have been hammered today on the back of more worries about a major double dip recession globally and in the United Sates.  The SPDR S&P 500 ETF (NYSE:SPY) have been slammed down to the InTheMoneyStocks master level of $107.50. As this master level was hit, key stocks filled key gaps and became a short term swing buying opportunity.

The first stock that looks to be ready to get a short term bounce is Chevron Corporation (NYSE:CVX).  Just last Monday, four days ago, Chevron gapped higher to the 50 moving average on the daily chart.  Early in the day it hit a high of $77.25.  By the end of the day, it had fallen negative and today it hit a low of $70.80.  Yes, four days later, Chevron is almost 10% cheaper.  Not only is this a nice discount but if you look closely, there was a closing gap fill level on the daily at $70.79.  This happened on June 10, 2010.  Today, the low of the day officially filled the gap.  In my humble opinion, this is a no brainer swing trade long from this level.

Exxon Mobil Corporation (NYSE:XOM) is another one much like Chevron and should be treated the same way.  After the pull back the last four days from the 50 moving average and a high of $64.50. Exxon hit a low today of $60.05.  This will should also have a great bounce in the short term.  To get more swing trades, guidance on the markets and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com