Which Way To Go?
When stocks gap to the downside, there are two ways to play them. One is the
direction of the trend. The other is to be a contrarian when the situation
warrants and get long as the stock moves back up into the gap.
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09:50:40
Surge Alert
Check Point Software (CHKP)
is up nearly 2 points since its downside gap. CHKP is down 5.72 to 21.74.
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The move to the upside matches perfectly with the action of the
Nasdaq Composite
(
$COMPX |
Quote |
Chart |
News |
PowerRating), so the trade is going in the same direction as
the market as a whole. Tune out the “pundits” (I heard someone this morning
saying the high would come in the first five minutes, then sell off) and trade
what you see. Mr. Market cares not what you, I or any one of the “experts”
think.
Until tomorrow,
Duke