Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Monday's market Recap: Classic Gap and Fade _ Friday's Close was Precursor

Monday, January 11, 2010

Monday's Market Recap: No help...even if you're in the right sectors.
Classic gap and fade day. We knew but did not trade it well. We noted over the weekend the Mutual Fund Monday buyers had jumped the gun and bought both during the day and @ close on Friday. We noted earlier  last week the AA earnings (so so tonight) would kick off the season and stocks are always in neutral after the new years opening pop and before earnings.

The Futures overnight were ok, but not great. We then open strongly in last week's favorites only to not only fade the gaps up but drop below the close on Friday and even the opening prices on Friday in some stocks.

To wit: we took stops but did not push them up high enough or fast enough. We hung around at the table too long. Lesson learned. We knew it but failed to trade it.  Profits often allow for complacency and we got caught. Will be far more vigilant tomorrow.

Disclosure: none