I had a dream last night we would gap up 2% this morning. When I awoke from my slumber I was happy to see futures were up nearly that amount (thanks pajama boys). Sometimes dreams really do come true.
On gap up days like today I usually don’t pay much attention to the markets because normally it is in good hands. In the past, when we would gap up like this, no one would be foolish enough to fade it because most likely it would be a “gap and camp” or a “gap and ramp” kind of day.
At the time of this writing, all pre-market and opening gap gains have been erased and we are hovering near the lows of the day. This has been a pretty consistent theme for 2016. So far this year, 8 out of 11 days have closed lower than the opening highs.
The demand for stocks is abysmal. Sack up and buy something on the cheap, support your country. These are the opportunities traders should be looking for. Even a 2 or 3 day rally will flip the sentiment enough for a decent sized gain for long holders.
But, if the fade continues, it may just be best to stick with the 3:30-3:45 Ramp which is up 1.00% on the year.
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I’m with you and think sellers are getting exhausted. Rip coming very soon that will stick and have legs $$
@goose20? Why would sellers get exhausted making money – that thesis makes no sense.
It’s more of the fact that longs don’t have enough money & gumption left to bid the mkt in size
The bulls will prevail like Jordan and Pippen 96 and 97