Wait, Wait, Wait
Waiting for a pullback or a consolidation after a gap can be a safer way to
play them. Why? Not all gaps are created equal, and sitting for a little bit can
often give you an indication of whether the gap was a head fake or momentum
based.
09:45:24
Intraday Setup Alert
Career Education (CECO)
is beginning to pull back from its intraday high. CECO is up 4.39 to 37.64.
Career Education
(
CECO |
Quote |
Chart |
News |
PowerRating) is a good example of this from earlier today.
The gap is created on the open, and the stock surges nearly 2 points higher.
Chasing this gap can often lead to losing trades, since you don’t have a clearly
defined entry, and where the ride stops is anyone’s guess.
But by waiting for the pullback to take shape, you give yourself
a clear entry and a chance at staying out if the stock does not make another
push higher. No trade if the stock fails to move above the previous high out of
the pullback, is better any day than taking a loss — even a small one — if it could
have been avoided.
Until tomorrow,