Often signals the top of a climax run.Climax run and exhaustion gaps are just of the ways that excessive speculation in a stock can trigger a blow-of top and a nasty decline.Do not let your profits disappear.(I learned from IBD) INVESTORS BUSINESS DAILY.
<<< exhaustion gaps are just one of the ways that excessive speculation in a stock can trigger a blow-of top and a nasty decline.>>>
You better re-read your IBD, snapperhead. Thursday was not an exhaustion gap. We gapped up in the morning, and not only closed green on the day, but we closed HIGHER THAN THE OPEN!!! And we remained so even in the AH trading.
Exhaustion gaps typically gap up on huge volume, but then they sell-off even harder intraday on even bigger volume, to close below the open price, and then down in the red for the day. Furthermore, MAGS CLOSED at a new 52-week high, in case anyone forgot. Exhaustion gaps do not close on 52-week highs.
Retract what you said and do not spread lies on this board.
Some climax runs will end with an "exaustion gap" which happens when a stock that has been advancing rapidly and is greatly extended from its base. Which opens at a price about the prior day's highest level. This usually indicates the final stages of its move on final burst of buying before a stock eases back.