Monday, July 23, 2007
Notice the gaps on GOOG, CAT and INTC. These gaps normally get filled especially in a bull market. Take a look at the CSCO chart. Sometimes they take a bit but they almost always get filled. I'm wondering how we could put together a profitable trading system around these gaps. Let me do some thinking on that one. If anyone already has a proven system feel free to post. I already know of one very profitable system that buys whenever a stock drops 10% or more. Those occurrences are rare though and usually take a while to fill. I'm guessing we could put together something to take advantage of these little earnings miss drops. Especially when the miss has nothing really to do with the overall viability of the company.