Mind The Gaps

Today’s stockmarket action isn’t constructive.

Whether traders/investors are celebrating inflation being ‘less’ bad or speculating on a change of interest rate policy……

These sharp moves create gaps in the price charts.

‘Gap-ups’ are often honoured (at some time) that prices trade back down to fill that gap between the previous day’s high and the low seen in the exuberance of the following day.

The chart below of Amazon is one example but you will find this littered globally across a range of stocks.

This a case of caveat emptor.

While rallies can pop a little higher be sure to assess your risk/reward skew amongst the current price action.

I think this is another rally to ‘rent and not own’.

November 11, 2022

by Rob Zdravevski

rob@karriasset.com.au

Happy Remembrance Day

Lest We Forget