Whether or not you did well trading intraday today (Tuesday), you have to admit that it was a rather intensely difficult day. Let’s see if we can discern order from the day’s seeming chaos and view the DIA (Dow Jones) 5-minute chart for insight. DIA (Dow Jones ETF) 5-min chart: Just like Monday, Tuesday’s action…
The volatility of October in the stock market provided a remarkable number of gap openings which provided risk and opportunity for nimble gap fade traders. With the new month upon us, let’s see how the traditional DIA opening fade gap statistics fared during October. For the first study, let’s look at DIA prices (downloaded from…
What a month September was for the Market. It lived up to its reputation as a weak month historically. So, how did the gap-fade tactic work in the Month of September? How many overnight gaps occurred in the Dow (DIA) and how many of those filled? It’s time to take a look as a new…
It sure would be nice to have a continuation move one way or the other, instead of this constant big up, big down choppy environment we’re experiencing – these conditions can’t last forever so hold tight while we’re in them. Let’s look at the daily Dow Jones and today’s intraday chart (complete with gap fade)…
There’s so much to be said about Apple’s (AAPL) intraday performance today. From the 10% gap down to a rally to close the day off just over 2%, Apple traders were in for an amazing ride. Let’s look at the intraday and daily chart to see where this leaves us. AAPL 5-min: The bulls truly…
Did the “gap fade” technique deliver edge as usual in the month of June for the Dow Jones Index ETF the DIA Diamonds? Each month I compile the number of trading days in the DIA that had an overnight gap of at least $0.20 (20 Dow Points) and calculate how many of those gaps filled…
Can you be profitable using the simple “Fade the Gap” strategy in Apple Inc (AAPL)? Let’s find out. To recap, a gap is defined as an overnight price move greater than $0.25, in which case the trade is to ‘fade’ the gap and trade against it and exit when price reaches yesterday’s close. The stats…
With the month of May winding down, it’s now time to see how many days resulted in an overnight gap, and how many of those overnight gaps filled, giving us clues as to whether or not the “Gap Fade” strategy continues to work. Using Excel and daily data for the DIA (Dow Jones ETF), I…
Today’s US Stock Market Indexes surprised us with a semi-trend day. The day began with a perfect gap-fade and then gave us a ‘double-distribution’ trend day. Let’s look at it! In the DIA 5-minute chart, we see the day start with an opening gap that was filled and then the market trended in the direction…
So far, the US Stock Market Index trading has been stable using simple strategies that I have discussed frequently on the blog. Let’s examine the U-Turn Buy (or Saucer/Rounded Bottom) action along with the classic Gap-Fade trade today. You can almost ‘feel’ the balance shifting through simple visual inspection of the price action alone to…