Gaps R Us

Gaps occurs when the high of the day is below the low of the previous day or when the low of the day is above the high of the previous day. In this case I am referring to the latter. See my most recent 'gap' trade on the AMGN chart below.



I read somewhere that gaps between 5% and 10% will fill over 80% of the time within 20 days. I like those numbers so I present to you my favorite unfilled gaps over the last few days that I guarantee** will fill within 20 days. (**Disclaimer: There are no guarantees in life or in trading, just hyperbole.) The only thing that is guaranteed is that I will never spell 'guarantee' correctly without the help of the spell check tool.

Cray...


Disney...


Frontline...


U.S. Oil...


Since I will trust the 80% rule here, three out of four gap fills within 20 days seems reasonable. That USO gap isn't very wide but I'm expecting the gap to fill and then some. Just trying to time the manipulation correctly after a bounce off of the $102? a barrel mark.