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Gapper Dummy Trade - Millicom International Cellular SA (USA) (Public, NASDAQ:MICC)
By: Wall Street Warrior   Wednesday, July 23, 2008 2:41 AM
Sectors: Basic Materials , Computer and Technology , Finance , Medical
Symbols: ARTC, MICC, ORH, WOR
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As I mentioned in the comments section this morning, gappers that are ripping in pre-market are the ones I focus on. These generally have enough momentum to move price lower (higher). MICC was my first choice this morning. After the WOR, it sort of fell into a dead zone of offsets and eventually retraced back up to the declining 10 EMA. The key is to observe a series of lower highs, followed by price/volume contraction at or near the ORL. At first glance, it doesn't look like much, but if you do the math, you'll see that MICC was well worth the wait. I don't bother with Fibonacci extensions on really wide gaps.

ARTC, yesterday's gapper play, set up a 3 PP base, and low risk entry for a nice gain into the last hour.

Today, was mostly a gap fade day as many of this morning's gap downs were quick to take out the ORH.

 

 
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