Each day, dozens of stocks gap up or down as a result of some preceding event. Gapping stocks create buying opportunities when there is either insufficient buying pressure to sustain the move up in price (gap-up) or a market realization that the stock has fallen to a periodic unprecedented low point (gap-down). The market’s reaction to these phenomena can be transformed into money-making opportunities using the Six Sigma methodology.
According to the current literature, there are four basic types of gaps: A full gap up occurs when the opening price is greater than yesterday's high price. A full gap down occurs when the opening price is less than yesterday's low. A partial gap up occurs when today's opening price is higher than yesterday's close, but not higher than yesterday's high. A partial gap down occurs when the opening price is below yesterday's close, but not below yesterday's low.
Today's stocks are (drum roll please)
CPTS
FFIV
LZ
If CPTS opens between $19.02 and $19.85 I will buy and wait for the run up
If FFIV opens between $41.53 and $43.00, I will buy and wait
If LZ opens between $70.50 and $72.60, I will buy
Yesterday, like I told you, I bought TUP at 45.70 and sold at $48. Yesterday was a good day.
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