Trader Mike

Now matter how good the news is, or may seem, at the open I’ve found that it usually pays to wait 30 to 60 minutes to see if sellers step in. On these type of gaps, right into resistance areas after a big gain, this tends to happen more often than not:

I don’t know if that gap will close but whether it does or not at least now I can look for better entry points once I see a reversal attempt. (Which I think is happening right now…)

I’ve had this rule taped to my monitor for the past 3 years: On gap-up openings, buy above the 10:00 high. That rule has saved be a lot of money. When I started trading, I’d get all excited when I saw the futures flying pre-market. I’d rush in to buy at the open, thinking I’d get in before the market ran away from me. Almost invariably I’d buy near the high of the day. Somewhere in my reading I came across that 10:00 rule (for some it’s 10:30), and I’ve followed it ever since. (The opposite of this rule holds true for downside gaps.) The market …