bull_or_bear, some technicians believe all gaps are filled. However, I believe they are filled 95% of the time. It does not matter how long it takes. It can take a few hours, a few days, a few weeks, a few months, or even years for a gap to fill. I have seen it happen many times. I usually win bets on the gap theory. Mr Market simply does not like gaps on its charts.
What's important to know at this time is that the FED has created a parabola in the markets by not allowing the markets to correct naturally. A parabola will always collapse. This is no longer your father's market. The FED controls the market now.......oh heck, they are the market so they are going to try to hold it up as much as possible; but I am almost sure that they will fail. Eventually, those gaps are going to be filled.
At this time, The DOW and S&P500 both have a Death Cross which means the bears are controlling the market. As the markets top, there is more volatility as the bears and bulls battle for control. When bulls win a battle, stocks move up; and when bears win a battle, stocks move down. The $VIX is also showing volatility on its chart. It has moved above 20; and as long as it remains above 20, there will be volatility.
future growth is the valuation issue. The street seems skeptical despite the history (although, acquisitions played a major role). Based on free cash flow, todays valuation is ridiculously low.
moc - doesn't the S&P (or spy or futures if you want to look at "traded" securities) have a lot of gaps at some very low levels? These occurred in our current run-up, post the Mar-2009 low. Which leads to another question. Is the 95% gap fill still true? GLW is a clear exception (at the moment) with 4 unfilled gaps.
FWIW - IMO, it wouldn't take too much more general market correction, for GLW to fill the gaps you noted. That said, I was wondering why GLW has been relatively strong the last few days - including today with it dabbling at positive territory, despite S&P off -1.5%.
GLW has multiple gaps that need to be filled. Gaps are filled 95% of the time. There are gaps located at 15.09, 14.01, 12.82 and 11.29.
Back in 1999, the folks playing GLW were playing a Parabolic Curve, a highly prized chart pattern among traders. The stock moves up fast and it looks like it will continue moving up; however, all parabolas will eventually collapse. There is never an exception. GLW finally collapsed on 8/31/2000. Since then it has been making a base. GLW will run again some day in the future.
You ever notice whan a message board gets extremely negative on a company, its usually a sign of a bottom.
Just my observation, take it anyway you like. of course, the opposite is true for when a company is making 52 week highs, the message board is alive with all sorts of how awesome the company is doing, and then 6 months to a year later its down in the mud.
falling sales growth and earnings. Falling straight down from 24.90 This turd is cooked for some time with the China devaluation. I bought 100 shares when Cramer said buy glass on the recovery so I did. 21 to 8 in a few months Thought it was on a recovery at 25 straight down from there. No I have been buying BA, ACHC, SCMP and a few others
I held glw for about 20 years but threw in the towel when it dropped to about 20. I am looking to replace the glw but will only be buying on dips, perhaps below 16.5 but more likely below that. Thank you for your thoughts, as I may once again be long.
bought 1800 shares last week. And will keep adding on further dips. Now you Know...
Sentiment: Strong Buy
Oh, really? And where has the share price been going? Ever hear of a downward ski slope pattern? It merely uses its profits to add more stock options, as it is run for its big boys, not the shareholders in any sense of the word.
This "lousy company" ran a positive $3.6 billion cash flow in the most recent fiscal year, so I think the problem is all in your own mind.
Sentiment: Strong Buy