The key to gap opens, is to be IN the stock and reap the benefits of the gap. Consider the following “facts”.
by Bob Rinear
The International Forecaster
One of my pet peeves when it comes to all things market, is the morning gap up or gap down. If you’ve been around the markets long enough, you know a few things that are indeed true. For instance, if you’re not “in” the market on the 10 best market days, there’s a chance you’re flat on the year.
Well this is also true concerning gap up mornings. If you’re not in the market at the close the day before, it’s frustrating as hell to see the market gap higher by 100 or 200 points the next day, and worse…. Many is the time that the morning gap high, is the high of the entire day.
This is what catches so many new traders off guard. They see the morning futures suggesting a big open and they put in market orders at the open. Well those market makers see all those market orders, and they line them up on the “wheel.” Then they can literally ‘place” your order pretty much where they want.