RE: RE: RE: If the Mkt continues to DUMP...Oh, gosh Krazy, I was with you on your post all the way, up until the very last moment.
You sounded so reasonable. You sounded so sincere. I was hanging in there and thinking, yeah, he doesn't have to answer to me, who the f am I?
He wasn't trying to sound rude and that was cool too.
He liked the creative fear line. That was cool too.
Not a big fan of the love me or hate me, it doesn't change my account balance line because I think being a person is important too, not just a bank account balance, but I was cool to let that slide too. I get that this is just a bullboard, not 'eharmony'.
then, darn it, if you didn't lose me at that last line that this is going to look very very attractive soon, so keep your powder dry.
because in that last line, your chart work in your previous post and your worry that we may gap down, became false, because you showed it isn't fear at all, but anticipation and hope.
Did you see how you presented two faces there?
But you know what, that's okay. Cause I don't actually care that much. It is what it is. Krazy, or me, or nohype, or anyone here, aren't the MM anyway, so it just goes where Joe wants it to go anyway. Though wasn't it nice that someone was there to take a milion of his hands today. I liked that it was scotia - probably a mutual fund - that's great. I say mututal fund because I am not sure that an individual has the confidence or money to fill 900 thousand at one fell swoop too often.
I will tell you what, because Krazy isn't interested in any argumentative gymnastics tonight, I am going to answer my own questions for everyone.
And the answer is the longer that it takes for a gap up to not fill, the more likely it is for that gap to not fill. Also, the gap up theory is 50/50 but people like to quote it a lot because it creates a lot of good old fashioned fear.
The filling gap is really not a tradeable event as an expansion gap. If it were then you would have not traded EFG well for about 4 months now I believe.
The books that I have read say this however, and this is the most tradable gap technique and it is this: the first test of a gap almost always holds.
So lets say a stock gaps up from 25 to 30 cents and goes to 40 cents on its ascent, the first time that it retraces, the stock will almost always hold at 30. Buying it at 30 for a trade is extremely successful.
Also there are three types of gaps: an expansion gap, a continuation gap and an exhaustion gap. The least likely of the three to fill is the expansion gap which starts a rally. The gap that almost always does fill is the exhaustion gap, obviously by the name you can surmise why as it indicates that the stock rally is exhausted after that final push.
Should something Krazy (pardon me, my bad, i mean crazy) happen, then the gap filling would be followed by the support at 20 which is long and strong being held.