Unexpected Gap, Expected Result
Many times, trading is straightforward. Other times, however, it is not. When
you can piece together market dynamics along with news, you will find great
trades that few others are on board for.
09:42:15
Forest Labs (FRX)
gapped at the open and has now triggered a news reversal. FRX is trading at
91.20 up .02.
09:50:36
Plunge Alert
Laboratory Corp (LH)
gapped lower at the open. LH is having an effect on other companies, such as
Forest Labs (FRX).
LH is rallying from the lows of the day. LH is trading at 22.00 down 11.18.
While the news was not directly related to Forest Labs, we were monitoring it
for a possible move due to the bearish news that Laboratory Corp.
(
LH |
Quote |
Chart |
News |
PowerRating) was
coming out with this morning. We were looking for a possible gap lower, but when
it gaps up and reverses, the stock is talking to you.
When the stock reverses to the downside and takes out the
Thursday high, the waterfall ensues and the stock drops over 3 points intraday.
This is the art of
reading the market. A little tougher to do, but with a little practice you will
start to hear what it says….loud and clear.
Have a great weekend!