Slope Of Hope with Tim Knight

Next Target for the Russell 2000

Well, it looks like a rock-solid trend day for the bulls. The gap-fill ahead on the Russell seems like a logical next step, if we keep seeing anything like this strength.

Watch This Gap Closely!

Personally, I think it's a pretty good "tell" if there's a sustained rally ahead (gap closure and continuance) or this is just a bull trap.

Gigantic Miners Gap Almost Filled

Timescales (by Springheel Jack)

I have a bearish bias that I have to struggle with. The source of my bearish bias is that I've read an awful lot of history and economics, and have always been skeptical about the existence of the Tooth Fairy and Santa Claus. I don't believe that well-meaning folly results in happy endings as a rule, and current world economic policies look like slow fiscal suicide in historical terms.

However I try to put that bias aside as far as possible because history also teaches us that hubris can last quite a while before nemesis arrives to set things back on the proper path, and this collective delusion of the developed world that anaemic growth caused largely by too much debt, can be corrected by amassing more debt to grow our way out of it, might continue for a while longer.

Ultimately this period should end with the bond markets demanding high real interest to lend to governments who have become doubtful credit risks, and a consequent change in policy that corrects the problem through austerity to return government finances in the developed world onto a sustainable long term path, and possibly also default, either by classical or inflationary means.

Earth's Gappiest Stock

As huge as Google is, not only do I never trade them, I don't even bother following them on my 1,000-stock watch list. It's just a really uninteresting stock to my eyes.

For options traders, I imagine, it's an incredible stock, particularly since this thing always seems to have huge post-earnings gaps. I don't have any particular commentary or strategy to offer, but perhaps some of you do. I've drawn in the gap for tomorrow indicated by the current bid/ask price.

Need Proof of the Gapiness of the Market?

Symbol EDZ says it all. I've highlighted the gaps in the chart. One year ago - no gaps. This year - gaps galore. If you're frustrated trading, maybe this will help explain why.

 

Perfect Gap Fills All Over the Place

Google Gap

I mentioned a couple of weeks back how "gappy" Google is, and how those gaps might be played. Since then, this has revealed itself beautifully. Notice how, as of yesterday, the gap was filled almost to the penny. You can pretty much count on GOOG provides gaps during each quarter, since earnings always seem to move the stock in a large way.

Gappy 'n' Crappy

I don't trade NFLX, but I thought I'd show this chart of recent Netflix action and all of its gaps. This is one of the gappiest stocks around. Today - with the stock down over $25 as I am typing this! - is no exception. Some put owners out there are very happy today.

Gappy 'n' Crappy

I don't trade NFLX, but I thought I'd show this chart of recent Netflix action and all of its gaps. This is one of the gappiest stocks around. Today - with the stock down over $25 as I am typing this! - is no exception. Some put owners out there are very happy today.