Just a quick post to point out that stocks that tend to have huge surprise gaps in the past tend to do so in the future. An organization like lululemon can’t seem to avoid shocking analysts in both directions. Here in Palo Alto, their main problem is the same group of obese women keep strolling in and stealing thousands of dollars worth of their merchandise before their open-minded security guard dares to challenge them. Anyway.
I’m satisfied with gold’s proximity to its gap that I have re-entered my DUST position and a short GLD position. I’ve got tight stops on these, though, and if GLD gets past $115, I’m out. The front month for gold is below, with its gap circled.
The NASDAQ has been red-hot lately, hitting lifetime times pretty much every day. Well, enough is enough. I’ve turned my attention toward a couple of issues that are close to filling their gaps. Late in the day on Tuesday, I shorted Amazon…..
On the 22nd of December, I gave a heads-up about shorting Micron if it got close to its gap. Specifically, I said I’m going to be watching this, because if it can stay below (or at least not far above) 23.66, it may be a very interesting new short based on its gap closure. So how high did it get? 23.64.