Mo’ Gaps

• April 19, 2001
• Duke Heberlein

Momentum gaps on the open in stocks that stick and turn into tradable
patterns are often good candidates for traders who like to jump aboard the
momentum train. Using the java applet’s “Opens more than 5% Higher Than
Yesterday’s Close” alerts will quickly give you a list of stocks that have
gapped to the upside, which you can then monitor for pattern setups.

 

Search Results Total Records: 6    Viewing Records: 1 to 6 Newsfeed Time (EST/24hr) Symbol Headline STK 09:30 NEWP  opens more than 5% higher than yesterdays close STK 09:30 PMCS  opens more than 5% higher than yesterdays close STK 09:30 MCDT  opens more than 5% higher than yesterdays close STK 09:30 SUNW  opens more than 5% higher than yesterdays close STK 09:33 IBM  opens more than 5% higher than yesterdays close STK 09:33 EMC  opens more than 5% higher than yesterdays close

 

Several of the stocks on this list have provided excellent trading
opportunities in today’s session.

 

McData
(
MCDT |
Quote |
Chart |
News |
PowerRating) gapped open, had a five-bar surge and
then formed a pennant. MCDT gained almost 3 points following the breakout from
the pattern.

 

International Business Machines
(
IBM |
Quote |
Chart |
News |
PowerRating) forms a mini cup and handle
off the gap open, running for 2 more points off the breakout.

 

PMC-Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating) formed a mid-day Slim Jim, then
proceeded to shoot up for 4 points, and EMC Corp.
(
EMC |
Quote |
Chart |
News |
PowerRating) made a small
gain out of the same pattern and is now pulling back from its intraday high.

Use the applet’s gap opening alerts, then follow the market
dynamics and the price action of the stocks that come across screen. This will
allow you to spot the stocks that really have buyers coming after them.

Until tomorrow,

Duke