3 gap play
Isn't this the 4th unfilled gap from the lows? This is excluding the intraday surges that looked like gaps!
Yes but this is the 3rd in a sequence close to each other. Forgot the exact rules, but the gaps have to be within x days of each other.
when I watched KWHY, in Los Angeles back in the early 80's as the bull mkt started rolling, Gene Morgan used to say" follow my pointer to the breakaway gap, extension gap, and finally exhaustion gap. 3 gaps
Lifted this from the "Exhaustion Gap" post below for the mention of Gene Morgan by tommyt.
Gene Morgan. Despite the troubles he got into later shilling cheap stocks, his show "Charting the Market" on KWHY in Los Angeles was one of the most important in the history of financial broadcasting.
And he certainly changed my life. I had just started trading and was making a bunch of money in Microsoft and Compaq in September of 1987 (I think you can see where this is going...) and feeling like the smartest guy in the world. Bought everything fully leveraged on the Friday before the crash, thinking that was a climax low and trying to get the bottom tick. Lost my life savings in the crash that Monday.
Watched Gene Morgan after the market closed on crash day.
In the chaos and destruction of that day, he mentioned that for "anyone who follows the McClellan Summation Index, this was no surprise." I thought W.T.F.? I was broke and catatonic for the next several weeks watching his show, and then on Friday, December 4, 1987, as the NY Composite tested and took out its October lows, Gene Morgan said "this looks like a McClellan buy spike, but we're going to have to wait until Monday to know for sure." Well, the market screamed up that Monday. Yes, Morgan said that was a "buy spike". He said it was safe to buy stocks now. And the market screamed again the next day, Tuesday. And when is rose again on Wednesday, confirming a low that may never be tested again (unless we have to start making trinkets for China), Morgan started off his show, beaming, with a quote I've never forgotten -- "Isn't it wonderful to once again witness the absolute infallibility of the McClellan Oscillator?"
Indeed. Today's an worthy day to once again bear witness.
So, tommyt, thanks for the memory.
For more KWHY memories:
SHERMAN McCLELLAN MTA PRESENTATION
