This morning the markets gapped way down. This gap down caused BGZ to gap up sharply to 73.63 at the open. That is the entry price I will use for blog purposes. However, it may not have been possible to place a buy stop order at 72.00 this morning, so I am going to try to follow up over the next week for an additional quality entry on BGZ, but I will not track that on the blog.
For today, anyone could place a buy limit order at 73.63 on BGZ to try to get in at the same price as today's open. However, when SPY gaps down >2% there is a strong tendency for prices to close above the opening price of that gap within 3 or 4 days. That would suggest that there is a good chance to get in at 73.63 or better on BGZ sometime this week or early next week. Take a look at the following link about large gaps in SPY from the Quantifiable Edges blog
http://quantifiableedges.blogspot.com/2009/02/2-gaps-down-revisited.html
Pete
Tuesday, February 17, 2009
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment