Gap Fade: Tuesday 04/25/2006

[Pete]

RNOW kicked my butt.. wonder how high this could go..

How does it look on your 5 min. chart?

[wisebuys]

I'm in the same boat with you Loffigus on day-trades.  Only trouble is I got in this short @ 17.84 and didn't stop out.  Wish me luck, looks like I'll need it.

[Loffigus]

I'm in the same boat with you Loffigus on day-trades.  Only trouble is I got in this short @ 17.84 and didn't stop out.  Wish me luck, looks like I'll need it.

Oh no!  I would be sweatin' if I was you.  I stopped out at $18.40
The one good thing was that I only shorted 300 shares today, instead of the usual 500-1000.

So my loss was fairly small, still annoying though.  GOOD LUCK to you, I hope you get a good chance to exit today.

[Pete]

I'm in the same boat with you Loffigus on day-trades.  Only trouble is I got in this short @ 17.84 and didn't stop out.  Wish me luck, looks like I'll need it.

I was in your boat too. Just got out @ 18.25. Still took a hit on 1000 shares.

[nullzero]

Was just thinking if we could take all the gap ups and gap downs and compile some simple statistic chart for them would help alot on making profit.

EX. we take G's list over a period of 2-3 full weeks looking at the stocks individually and seeing if they continued to go up or fill the gap. Was the market up or down the day before? What day was it? Friday, Monday, etc.. How much percent did it gap? Did it go up or down the previous day? Did it gap on news or no news? Earnings news or not?

Im sure if something like this was made we could find a sweet spot to making profit on gap up and gap downs.

[trajayb]

I have horrible luck with day-trades.  I am always on the wrong side of them.  If I short, they spike up, if i am long, they spike down.  It virtually never fails.  Almost as though there is some kind of conspiracy against me.  Does anyone else seem to have super-natural bad luck with day-trades?

Me too. No luck on Shorts and always been a loser.

Any thoughts about going long and short at the same time? If it goes down keep the short and if it goes up keep the long.... I have not tried this yet.

[Loffigus]

I have horrible luck with day-trades.  I am always on the wrong side of them.  If I short, they spike up, if i am long, they spike down.  It virtually never fails.  Almost as though there is some kind of conspiracy against me.  Does anyone else seem to have super-natural bad luck with day-trades?

Me too. No luck on Shorts and always been a loser.

Any thoughts about going long and short at the same time? If it goes down keep the short and if it goes up keep the long.... I have not tried this yet.

I have thought about this also -- it seems like a good way to limit your risk, and play the peaks and valleys.  For example;

Short 500 @ 19.00
Long 500 @ 19.00

Price spikes to $19.30 -- Sell the Long = +$150 gain
Price cools down to $19.10 - Cover the Short = -$50 loss

Net Profit = $100

[plocp]

never short stock at strength, short stock at their weakness, that's my hard earn painful experience.

[wisebuys]

Thanks for the well wishes all!

Well the plot thickens, shorted more @ 18.91.  Plan to cover all at close, hopefully not at mega loss.  I'm hoping traders will take their profit and run so as to lock in gains before close.

[Loffigus]

This stock may have more than one day of tall white candles before coming down.  If today's action ends at the HOD, we may see a spike even higher tomorrow.  I am definately going to watch this one for the next day or so to see if a breakdown occurs. 

[wisebuys]

Hey G,

What are your thoughts on shorts at the close?

Enormous volume in RNOW today 3,149400 VS 225678 average.  Large amount of shorts covering.  Maybe we should check short interest before entering gaps.  Just thinking, keeps me from crying.

Have a GRRRRREAT DAY !!!!

[plocp]

gap show strenght, it also text book support, a strong break out also a buy signal for many trader, i really find no reason to short on gap open to against the trend.

any opinion?

[eliteG]

Hey G,

What are your thoughts on shorts at the close?

Enormous volume in RNOW today 3,149400 VS 225678 average.  Large amount of shorts covering.  Maybe we should check short interest before entering gaps.  Just thinking, keeps me from crying.

Have a GRRRRREAT DAY !!!!

I agree wise.. this short was doomed because of the large amounts of shorts before-hand.  A gap up and they were crying.. then we tried to help them and we were crying.. 

gap show strenght, it also text book support, a strong break out also a buy signal for many trader, i really find no reason to short on gap open to against the trend.

any opinion?

Gaps can be looked at in many different ways plocp.  Here is an example of what we were trying to do:  http://www.3stocksonfire.org/trading/index.php?topic=5148.0

[Adam]

WHere is the G-Man??
Is everything alright???

[eliteG]

WHere is the G-Man??
Is everything alright???

Yo Adam.. everything is cool.. I should have an update on G-Force over the weekend