Another Beautiful OGRe On the Qs
In my last post, I discussed how I started Tuesday long QQQQ due to an OGRe (Opening Gap Reversal), then had to flip back to short as that reversal failed. A failure of a failure, if you will.
Today, we got another OGRe, but this one played by the book. Here’s the setup- the Qs (and everything else) had gapped waaay down on the open, freaking out the water cooler bunch. That in itself is often enough of a sign to position opposite the open, but let’s be prudent and watch for the big gap down to fail. Sure enough, on the 0955 EST bar, the Q’s reverse (break upward) into the gap, and we have our OGRe trade:
This one was a straightforward gap fade trade, and it never looked back…
Nice when Mr. Market gives us an easy one once in a while, eh?