gap-reversal

Space company delayed the first launch of its Neutron rocket, 10% gap from the news. Also, it's been downtrending, which makes the gap even better. It has a quick spike at the open and starts to capitulate. The volume wasn't the best, but it looked right to me at the moment. Got in as it broke above the previous bar's high, and after some time going back and forth on price action, I decided it wasn't working. It should immediately push higher if it was going to work. So I got out for half my risk. Later on, it finally capitulated with big expansion bars and great volume. Sold half as it pushed close to the start of the drop and the rest as it finally broke the previous low. Only added the first trade to the stats, where I got faked out. The other trade had a clearly better outcome, with a 3.3 risk-reward, but both looked good. The first one wasn't as good because of the lack of volume.

10% gap as the whole sector starts to sell off and companies start to look at China to manufacture. This one offered 2 trades, both of them variations of the same strategy. There was a lot of premarket volume too. That activity makes it a better candidate for a trade. 1: Breaks out of premarket consolidation, comes back a bit to consolidate, and breaks out again. That's the entry. Sell half as it does the initial push and the rest at the low of the previous bar as it loses momentum. I actually missed this one because I had another trade at the time, but that doesn't change the fact that it was a great opportunity. 2: This is the one that I got to trade. It lost momentum and started to form higher lows with the pullback. Once it broke the high, I got in. Sold half as it started to reach the high of day and the rest as it lost momentum.

Sympathy play for this news. Both chip and storage stocks went down: Chinese memory chip advances raise competition concerns, so semis in the US dropped as they might be behind on the newest tech. 7.1% is great, uptrending earnings too. It didn't dip the way I was expecting, but instead it made a quick push, pulled back a bit, and I took my entry there, with a stop at the low of the pullback. I sold half at the last high, and I was hoping it would consolidate above the breakout and then push again, so I had a tight stop for it and got out almost at the same place.

Chinese memory chip advances raise competition concerns, so semis in the US dropped as they might be behind on the newest tech. 5.5% gap on a trillion-dollar market cap company is a good gap, plus they have uptrending earnings. My original idea was to buy the breakout of the premarket consolidation, but it didn't materialize. Instead, it started to hang around the bottom price for a long time, so the theory was to get in as it broke out of that consolidation. As it goes up vertical without any pullbacks I sell half at the top of the bar and the rest on a tight stop as it does the same for the next bar.

Their biggest Medicare contract got a decreasing rating, creating a 20% gap. Before the news, it had uptrending earnings. It's also one of the 2 current strong sectors. Premarket volume was already bigger than on regular trading days. It starts to drop a bit in premarket, capitulating right at the open. It kept consolidating below my entry on the way up, so I waited for it to break from it. I sold half as it makes its first big push, and the rest at the top of the same bar, since I thought a bigger pullback is coming because it went up too fast.

Incredible 9.3% gap on this and other comms companies as SPCX starts to buy infrastructure to get into the space, since it's well positioned with its internet service. It has uptrending earnings, but the fact that it's been downtrending for so long is not a great sign. It starts to capitulate with decent volume right before the open, and as it starts to bounce with volume, there is a good entry. I was out a few minutes later since it didn't keep going a bit more like T did on the same day.