Though I guess this AM was not really a gap-up, Trader Mike makes a good point about buying AM strength. The bottom line is, buy above the 10 or 10:30 AM EST high, as the big boys often use this pop to sell to the saps.
UPDATE and CORRECTION: Michael is of course correct, it was a gap up. I was sloppy and in a hurry, looking at daily charts after the pull back, and I blew it. My overall point, that buying AM strength can be a sucker's game, is still correct. However, Trader Mike was kind enough now to teach me two more lessons.
1. In the blogsphere, somebody is always watching.
2. If I am going to play this game (games, actually, both trading and blogging), I need to be more precise and accurate.
Thanks Mike.
3 comments:
WHy do you say today wasn't a gap up? The NASDAQ opened 16 points higher. To see how the Dow and S&P *really* opened look at DIA & SPY. You don't see the gap on the Dow & S&P charts b/c of the staggered openings on the NYSE.
Michael, you are of course right, and I am correcting my sloppy post. Thanks for keeping me honest.
Please do the same for me. And I forgot to say "welcome to the blogosphere" in my previous comment. So I'm saying it now. :-)
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