gap clos anyone?

[scandal]

who thinks the gap to the down side might close today?

[john_1]

I do.. and if I am wrong I will be long.

[john_1]

the Key level is 20250 OMO

[_nova]

John? Is there anything to read into the fact that we have an open gap down from Friday and an open gap up today and the buggers practically straddle each other? How does one read this? or not? Anyway, I'm pretty certain we'll see a close today but then we could have a huge rally

[#5]

hey guys Could you please educate me on what share you are trading to capitalize on the gap?

[john_1]

Nova.. Gaps close because of emotion... sure there is a massive resistance at 20250 and a breech would indicate upside..But the emotion is caused by the massive jump up on very little news making the shorts soil themselves..So I always ask were is the emotion..and I trade against it...

[#7]

John...I dont mind if you plagiarize my quotes....the least you can do is get them right though....its "where there is the extremes of emotion..." emotion is ubiquitous...only the extremes count in gap trading

[_nova]

well guys we certainly got thos extremes out there today... DOW goes from -280 on the weekend to +400 on futures today. On the other hand the CBOE VIX is at a staggering 69.95 and most worrying of all the O/N LIBOR is still too high at 2.4688 with 3-MONTH LIBOR at a very expensive 4.8188. My interpretation is that the LIBOR says the bankers want to beleave the promises but they're not quite convinced, not by a long shot. Either way I reckon the VIX says we're going to see some wild swings happening this week

[john_1]

Oh Chartist I have been such a loyal follower of your every word for so long I no longer know my own thoughts from yours...

[john_1]

Island Bottom or do I lack faith??

[#11]

Its the ALSI, based on the Top 40. OST does not have the facility to trade this , but you can download the software at www.dwt.co.za and check it out there. to open an account, phone Pieter 021 9146465. Margin is R19k if Im correct, per contract at R10 per point,long or short.Hope this helps.

[john_1]

Whats up with these sqeezes developing mid Gap..this is now the third is a row

[#13]

Is this the end of the down cycle or is it just another bounce... i think this week will be very tricky as it looks promising but covered by a cloud of smoke. so do as you please but get out before its too late cos theres a storm a coming... hahahaha

[#14]

Thanks Georgem, this does help a lot!

[john_1]

well thank God I saw the bottom pattern at 10 am, thank God for overnight trades with no risk! Thank God I am the bird and not the worm.

[john_1]

Come on DOW go for the big 10%

[#17]

No storm her clear skys

[#18]

John, looks like the DOW is gonna do it

[louisg]

John, don't mind Chartist. He knows you live under his shadow and therefore takes advantage of this fact. Just ignore him.