Gap Up

Hey Marty,

Hope you're good.

Do across the board gap ups like today (7/27) invalidate a set up for you? ie/ you're looking at a tight range, and it gaps well above that pre market, and not on news specific to that stock.

Thanks,

Thank you for the question.

I believe gaps higher at the open are good for selling/shorting.

However, if a stock is trading through its buy area then it is a buy. It does not matter to me if the stock gaps up to a buy area because I want to buy near the buy point and not chase a stock when it rises higher.

I created a short video to explain why I would buy a quality stock at a proper buy point on a gap higher.

I hope this answers your question.

Regards,

Marty