About a year ago, I hardly ever paid attention to gaps. These days, I’m quite fascinated by them, not only as entry opportunities but also as exit signals. One stock I was short, Ctrip.com, offers a beautiful example of this. It gapped up between July 31 and August 1 of last year. Although nearly half a year has gone by, it took that long for the gap to be filled, which happened today (the gap was at 37.46, and today’s low was 37.41 – – an amazing “tag” of the gap).
Wholly unrelated to this, if you missed the post earlier, please read about Slope’s spiffy new improvement.