FTSE gaps for week 1st Sept

[kevinmcm]

There has been an unusual number of gaps made this week due to the recent surges in FTSE. I have put together a list of the ones I can see as tradeable. Only one I have on the list is a Sept BARC short @471.5

http://www.tradersoftware.biz/gaps/gap.htm

Kevin.

 

[delboy trotter]

Hi kev,

Do you mean by gaps that the stock is overvalued by the gap amount and you short it back to where it should be approx? Does this happen very often and do the gaps backfill as you predict?

dbt

 

[kevinmcm]

Del - gaps happen all the time but this week was different in that the FTSE was pulled up quickly and quite a few stocks leapt. I dont usually trade gaps I just thought it was interesting that so many and some quite sizeable ones had appeared suddenly. AVZ being a choice pick !

The idea is that you would look to short or long for a recovery around the gap opening price. It doesnt always work that way of course and a gap doesnt need to get filled just because it is there.

AV. has filled its gap this morning.

Kevin.