Tuesday, January 09, 2007

the gap with VDSI

VDSI was down today $.34. I am not surprised due to the big run-up this thing has had. There was a gap yesterday that did not get filled today. Lets talk a little about gaps.
  1. It is always Bullish when a stock gaps higher.
  2. After the up gap, many traders want to sell and take profits.
  3. A new high after a round of profit taking, indicates that buyers are not waiting for a pull back to get in.
  4. If the price falls below the gap, be patient (don't buy the gap).

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