| Why pay so much attention to the first | | | | the "most points gained" list right |
| few minutes of the trading day and who | | | | after the open, you have to watch that |
| the top 10 or 15 stocks are right at the | | | | one! It should pull back some from that |
| open? | | | | huge gap, base out and start climbing up |
| As you know many times the market will | | | | again. |
| "gap" open. That is, it will open stocks | | | | To put it frankly, you can scan |
| higher than they closed the day before. | | | | thousands of headlines every morning |
| This is important because "something" is | | | | looking for that one "gem" of a story |
| going to happen to that stock. It will | | | | that will give a stock a big boost and a |
| either fall back down and be forgotten | | | | lot of times you find it, but Wall |
| (great short) on the day or it will | | | | Street will show you those stocks and |
| "fill the gap" meaning it will pull back | | | | dozens of others simply by the amount of |
| and then possibly move higher again. | | | | excitement right at the open. Some of |
| There is no stronger indication of what | | | | your best research can be started just |
| stocks may move later in the day than to | | | | two or three minutes after the bell. |
| take notice of who is the point leader | | | | Look for point gainers, volume spikes, |
| just a few minutes into the day. | | | | and % gainers. If you see a stock that |
| Every morning you can scan the headlines | | | | is trading on the leader board and it is |
| for stock moving news and take note of a | | | | up 2 or more points from where it closed |
| handfull of really interesting | | | | the day before, rest assured either it |
| headlines, jot those companies down and | | | | is being carried over from the news the |
| in addition to them, you want to see who | | | | day before, that morning's news, or |
| the "market" is moving. Many times you | | | | some thing neat is going on! |
| will see a stock up 3 or 4 dollars from | | | | Use the leaderboard as a tool, it tells |
| yesterday's close and you cannot find | | | | a wonderful story. If you study it long |
| one word of news about why it may be | | | | enough you will see very evident |
| moving. These are often very interesting | | | | patterns emerge, and you will be able to |
| stocks to take note of because | | | | benefit from these patterns. |
| "something" is happening there and it | | | | One last note: On a terrible day it is |
| warrants further investigation (inside | | | | even more important to watch the |
| buys, news leaks, new contracts, rumors | | | | leaderboard early. Why? Because even if |
| of mergers, and all kinds of interesting | | | | the market beats them up and pulls them |
| things could be causing the move). | | | | back, they could again be the winner the |
| Another interesting thing about watching | | | | next day. Watch for that to happen often |
| the "leaderboard" a few minutes after | | | | and you will find some good bargains the |
| the open is to affirm your own research. | | | | next day. |
| For instance suppose you see a mention | | | | Larry is the publisher of and is a |
| about the XYZ company looking good going | | | | recognized authority on the subject of |
| forward. You do a little homework and | | | | trading and has been publishing his |
| decide that "yes, this is a good looking | | | | newsletter, Stocks2Watch(R), since |
| candidate". Well, if that stock opens | | | | January of 1997. |
| strong the next day and is actually on | | | | |