Today's gap up and subsequent sell-off made what called a 'Gap and Crap', a.k.a. 'Gap and Trap'. (Funny that StockCharts.com's annotation tool turned 'crap' into '----'. Pretty slick of them.) It sucked in over-zealous buyers at the open and trapped them in losing positions. As some of you know, I have my #1 rule taped to my monitor just for days like this. I really didn't trust this gap because of the 'news' it was based upon, the fact that we had two bearish candlesticks the last two days, the fact that we gapped over the upper Bollinger Band, and finally because we still have the Fed meeting to look forward to.
I'm still holding all of my shorts, but I'll be real motivated to cover tomorrow.
