The market has tried to rally and has been sold off twice in a row, What I want to see tomorrow or very soon is the futures to be down significantly in the AM, without any significant news or event to justify the size of the gap down. This si a tip off the market is ready to capitulate, the market looks like a buy when it opens because there is no really bad news, then it craters and trapped traders capitulate, This is my favorite bottom trade, it has worked for me well in the past. I don't want to see a flat or slightly up or slightly down open, then we are more prone to gradually rolling down hill endlessly. So if there is a gap down in the AM that just doesn't add up, I'll be looking to buy. I think the two gap n craps might have us set up for this now.(JMHO)
What I'm looking for now,Exaggerated Gap Down
Posted 29 October 2018 - 08:43 PM
Posted 29 October 2018 - 08:56 PM
I am confused as to what you are communicating.
A big gap down at the open which is the low of the day?
or a big gap down and then huge follow through down closing at the lows ??????
UNDER 2600 is a huge airpocket of the abyss. So please enlighten me, a big gap down into or slightly under that area and then the trade is sell at the open and close the trade at end of day ?
I have a hard time seeing any final capitulation until on or the day after the election....
Edited by tradesurfer, 29 October 2018 - 09:03 PM.
Posted 29 October 2018 - 11:23 PM
It opens up with disproportionately, in other words further down than it really should be, the size of the gap isn't rational, then the market opens, traders buy, the market collapses, big drop, then the turnaround intraday.
Posted 30 October 2018 - 06:49 AM
no Gap down, going to sell NVDa again as soon as premarket opens for what looks like 9-10, then look to dt or swing trade whatever presents itself (JMHO)