NAS gaps

W

wb5983

In the 4 years I've been trading I've never seen NAS100 gap 30 points a day 3 days in a row. It's rare to get 1 30 point gap much less 3 in a row. An anomaly or some meaning?
 
It means that

(1) a lot of people have been caught short since October 9.

(2) Portfolio managers will underperform if they miss the move, so they are panic-buying

The move since October 9 needs to be put into the context of the erosion in stock prices seen since May
 
For more than a month the 1st 30 minutes of trading has rarely intersected with the prior days' close. It sucks, especially if you hold overnight (which I don't anymore) because the risk is amplified, and it takes away the profit potential of the days' follow through since few of these gaps close, and most stay in small ranges.

:confused:
 
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