My primary stock on the Open was GMCR. It is a classic momentum stock that had fresh news and a large pre-market gap. This type of setup is usually my #1 choice to trade on the Open if available. I have internalized the possible price patterns for this setup having traded it hundreds of times over the years.<\/p>\n
My second choice was MCP a former high flyer that had announced they were buying a company in their space that would help them to vertically integrate their business. At least that is what it looked like in the article I read on Benzinga<\/a>. MCP has been beaten down for the past year and was in a steady downtrend on pretty much every time frame. I thought that perhaps today’s gap up would be the beginning of a reversal of its daily and weekly downtrend. But if not there would be some money to be made on a gap fill.<\/p>\n Here is the video from our AM Meeting where I discussed which price action I would look for to determine whether to trade it long or short.
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