I tend to trade by the gap. Even MensaMonkey has been programmed to
account for the gap (although he's probably ignoring that too). A price gap
occurs when the high of the previous day is lower than the low of the next
day (for a gap up), and when the low of the previous day is higher than the
high of the next day (for a gap down).
Got that? If not, take a look at
the chart below. I've "ovaled"
the most obvious gap ups and downs. Take a look at the note in the chart. Today's high almost hit $38 which would "close the gap" from May of 2012.
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There really is no clear correlation here between the size (%) of the gap and the number of days it takes to fill, although I did some analysis on NASDAQ gaps back in 2011 which paints a clearer picture. Take a gander if you find gaps as stimulating as I do.
Dissecting FaceBook gap history, I found that 14 of the 15 gap downs have been filled. The one that wasn't filled occurred when FB was only two day old. 11 of 12 gap ups have filled. The most recent was a couple of days ago which is the reason I'm writing this. That's a whopper of a gap and my guess is that if FB can make four more cents tomorrow (and fill the original gap from day two of it's existence, that monster gap from last week will start to fill...slowly but surely...even in this anti-gravity market. The average number of days for FB to fill a gap is 21.8; a range between 1 and 122 days, not including the two gaps that have not filled yet. The mean really can be mean.
Don't get me wrong. I'm a fan of Facebook and that hoodied-out
genius, as much as I don't partake in that whole social-media
retardedness. The Zuckmeister paid off
the Bitcoin Brothers for borrowing their intellectual property; it's water
under the bridge now. I hope the stock
price goes to $100 dollars per share tomorrow, but the monkey in me says $26 before a summit to $100.
