there was much chortling when I spoke about the gap created on 2 Oct being the downside target for this weakness....I said we would be seeing about 1200 pts lower ....target reached and we move higher.....
Chartist,if you're still talking to me,the DOW will be lucky to close in positive territory today.They are quickly coming to terms with the state of the US credit problems,which will flow over into awareness of credit card debt.
Dow 13,566.97 +44.95 (0.33%) Nasdaq 2,753.93 +28.77 (1.06%) S&P 500 1,506.33 +5.70 (0.38%) Today really looked like a reversal day in the US. New highs right through November anyone? I still have a target of 1610 on the SnP which is another 104 points (7%) higher.
Hi Platsak go to google type in gap trading and viola its all there have also been strugling with it but its a learning curve. Gap trading is used mostly by day traders its when the market opens or closes higher or lower than the previous day thereby creating a gap between the closing price and the opening price. It is said that the gap will will be filled sooner or later and is 90% accurate from what i have read in trading books.
I would say 90% is on the high side....70 -80% would be more realistic but with most of these stats no one really knows...the thing to try and get your head around is what the market internals are doing at the time of the gap play....this will give you a really almost useful insight into why markets move in the ways they do