Topics include: How to tell if a stock is going to gap and the importance of the most recent history on a chart… Tickers reviewed: DOMK, SNRY, GMCR, GWBU, EGT, TROV, NNVC, SPY, LATI, ISIM, BODY, CMG
Below is a text version of the submitted questions (italics represent Stockhaven’s comments):
1.) I’ve got a question about gap moves. In the penny market where there are no after hours trading, what causes a gap move? How does the price move overnight? People always talk about the gap plays, but I want to understand what makes a gap play, and also what determines if a stock is actually going to gap.
if the market was open until 4;15 pm vs 4;00 pm… would this stock go higher than where it is now?
2.) Im hoping you can point out what I am missing when I am looking for my entry on a stock. I saw ATYG open this morning with high volume that had a small pull back at 9:45-9:50 and I saw this as an entry point. However, as soon as I entered the stock the volume died off and the stock took a nose dive. The trend lines I drew last night were at .0035 and .0031, were these way off? My question is, what do you think I am missing in my analysis that would lead me to believe it would continue higher when it was actually heading down? Do you think that I should have waited for a greater pull back before buying in? Based on the last two days volume and price I felt it had at least a day or two left in it
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