What To Do When The Stock Market Opens Big In One Direction
InvestorEducation / Learn to Trade Jul 24, 2012 - 04:39 AM GMT
As a rule of thumb, anytime a market opens big in either direction, NEVER take a trade in the opening direction of the market when you have a big opening move. The big move already occurred. Just think if you would have shorted MNST and AAPL and a lot of others out there at the open today — OUCH. The flip side is don’t react and sell either right away. Have you seen what just about everything has done since the open? Bounced that’s what. Let the opening dust settle first and above all NEVER REACT.
Don’t blink!
How many times have we said it around here? Take a look at MNST, AAPL, SBUX and just about everything from the opening.
Just look at the chart notes in MNST, AAPL and SBUX just to name a few. Given the “Don’t Blink ” nature of the markets we do this so you know in advance and are prepared for when and if an opportunity presents itself.
Instead of reacting to a big move AFTER the big move has taken place, pay attention to support levels and don’t be afraid to “buy in the face of fear” leading stocks that have successfully tested support levels
By David Grandey www.allabouttrends.net
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David Grandey is the founder of All About Trends, an email newsletter service revealing stocks in ideal set-ups offering potential significant short-term gains. A successful canslim-based stock market investor for the past 10 years, he has worked for Meriwest Credit Union Silicon Valley Bank, helping to establish brand awareness and credibility through feature editorial coverage in leading national and local news media.
© 2012 Copyright David Grandey- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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