Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Island Trap?



Yesterday's open leaves a potential Island Gap in the Nasdaq. But the analog below warns that such gaps have proven more of a short-term trap than anything else. In fact, we saw the same pattern emerge twice in 2004. The first occurred just one day before the March 2004 low and the second just five days before the August 2004 low. As I always remind you, past performance does not indicate future results. But the argument for a near-term Snapper has some credibility.

The "average" returns above are clearly skewed by the volatility of '00. However, it's important to note that in each case the ND futures were higher three days later. And if the '04 occurrences (below) are any indication, we'll need a probe below yesterday's lows before any real rally attempt can unfold.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos