NOW ( Service Now) is gapping up big, how to play it ?

[arrowtarget]

NOW had both strong earnings and guidance and is gapping up big time. How do you play it? Maybe wait for some profit taking near the open and get a pull back at 9:40? Tough to say. Maybe I will stay away from this one.
May also be looking at STX but still not sure yet.

 

[Scataphagos]

There are 4, basic "gap plays". You have to guess as to which one it is this time. Nobody knows for sure in advance.

 

[fan27]

NOW had both strong earnings and guidance and is gapping up big time. How do you play it? Maybe wait for some profit taking near the open and get a pull back at 9:40? Tough to say. Maybe I will stay away from this one.
May also be looking at STX but still not sure yet.

Fading gap ups is likely to be more profitable in this market.

 

[KCalhoun]

There are 4, basic "gap plays". You have to guess as to which one it is this time. Nobody knows for sure in advance.

Curious what your 4 are? I use 4 myself...

- buy a gap continuation
- fade/short gap n crap
- buy a gap fill pivot, eg sells down to prior day high and bounces
- really big gaps sometimes do partial fills for mean reversion pivot


thx...

 

[Scataphagos]

Curious what your 4 are? I use 4 myself...

- buy a gap continuation
- fade/short gap n crap
- buy a gap fill pivot, eg sells down to prior day high and bounces
- really big gaps sometimes do partial fills for mean reversion pivot


thx...

That be them.

I call them,

Gap-n-go
Gap-n-crap
Gap-fill-resume
Gap-half fill-resume

 

[Scataphagos]

Curious what your 4 are? I use 4 myself...

- buy a gap continuation
- fade/short gap n crap
- buy a gap fill pivot, eg sells down to prior day high and bounces
- really big gaps sometimes do partial fills for mean reversion pivot


thx...

This morning there was a "Gap-half fill-resume" in the ES... and a "Gap-fill-resume" in the NQ.... 2, clearly defined gap plays.... based upon the 2 PM, MT, RTH close. ("After" and "pre-market" action from Apple and Visa earnings obscured the gaps.)

FWIW..

 

[vincentnyc]

i traded NOW long time ago....now is not a good time to go long on any of these tech stonks. anytimes these tech stonks pop...short it from the top

 

[Wide Tailz]

NOW had both strong earnings and guidance and is gapping up big time. How do you play it?

1. Develop an edge
2. Wait until you see your setup
3. Select a share amount based on your puke point and max risk, minus about 20% for slippage
4. Execute
5. Monitor and exit when you hear the sound of millions of muppets crying out, and then going silent