Replies to post #173 on Digital Fusion, Inc. (fka DIGF)

[sleight of hand]

some debate on that one, here is an article that may help

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:gaps_and_gap_analysi

[emulwa]

Works all the time when a stock closes strong on a Friday. Also, some companies issues some juicy PRs over the weekend. Bottom-line, investors and momo players usually find out about these kind of stocks over the weekend coz they were busy in other stocks. So, most people, especially the newbies, put a bid to purchase during the weekend or Monday morning before the market opens. Of course their orders will be queued until the next trading day (Monday)> 90% of all times, the MMs will choose to fill the orders that will give them the highest profit from the BID & ASK spread upon opening on Monday morning. Then they will come down immediately on the BID, after filling the high-priced orders. They will want fill the ones at the bottom. Experienced traders usually know at what price to buy at (support level) and thus the MMs usually will come down on the BID in order to fill these orders (that's what we call a gapper)i.e, excited folks chasing to buy, in fear that when it goes up, it will not come down and thus miss out. Closing the gapper is when the MMs get back to the normal trading ranges.

[emulwa]

market timing and a bit of guesswork will tell me when to get in. If it keeps going up after the gapper, then I will try and research to find out how many shares have traded since the Friday up-tick and if they are in strong hands (I'm always skeptical that the weak hands would dump on me). If low volume and not in strong hands with a continuous up-tick on Monday, then I will wait for it the next day because there will be some weak hand that will sell if they don't see a PR on Tuesday morning. I will then have my buy at the new support level. Now, We all know that there will be a PR, but most traders do not like holding a stock for more than a week. So they will also cash out before next Friday if they don't see a PR by next Friday morning. That would be the best time if you can afford to wait for five more days (Knowing that a PR will come for sure). But hey, this company is a good one IMO even without the $118Mil, so most of this traders can afford to hold longer.

[emulwa]

Strong Support level is now at 2.60 because that's where big money exchanged hands on Friday.