Large Gaps Hook “Dumb Money”
Large gaps higher on Mondays tend to be traps and should be avoided on the long side, and we saw that again yesterday.
Some of the opening prices were absurd and a lot of money was lost on the opening buys, as the market reversed. This is what has always been known as ‘dumb money”.
Today the market is neutral/slightly oversold. A follow though from yesterday’s swoon from the opening would not be a surprise.
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