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Re: systrader post# 11610

Saturday, 11/14/2009 10:43:22 PM

Saturday, November 14, 2009 10:43:22 PM

Post# of 94785
TSTC - systrader
The signature of this Board is our ability to pool our collective knowledge into a wisdom that benefits the members as a whole. Thank you for sharing your knowledge with me on those three points to consider for playing the gap: amount, strength of news and standard deviation. Now I will try to give it my best shot on the "wisdom" part.
Numeric parameters:
gap closing amount differential is $1.80
gap deviation from close to previous close is 18%
60 day volume EMA(60) is 366K
Friday gap volume at 3,482K is 9.5 times the EMA(60).
There was a gap 25 sessions ago with nearly the same ratios, filled in 6 sessions.
Friday shows buying in the registered sector and intense profit taking in retail sector.
CMF(20) shows 4 weeks trading out, no reason to stop the slide.
CMF(5) where is the bar?
There is no way in hell we are going to see another $41,444,034 in up-dollar volume to prop the PPS at this level. Where, who is it going to come from? A mutual fund maybe?
I think if I was a system trader I would short the stock down to the gap or walk it down with day trades.
If I was long I would lay powder & lead for an ambush in the gap.

As far as fundamentals I have not looked at news, 10Qs or the 8Ks to get any idea on the strength of the news.





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