What's in a price increase?
There is a fundamental difference in stock behavior when a stock's price gaps up and decrease to a value that is higher than the previous day's close compared to a stock that increases to the same value without gapping up. A stock that gaps up and then decrease in value is less likely to continue to perform well. The reason for this is that when a stock's price gaps up and decreases, the market does not support the price increase. When a stock's price increases, the market does support the stock price increase because the market is responsible for the increase. In the gap up scenario, the market does not support the price increase unless the stock's price stays the same of continues to increase throughout the day. Particular consideration must be given to purchasing stocks with a large gap up percentage increase (over 7%).
Picks at end of day 10/15/2007:
+^ACEL, ALFACELL CORP (Google Yahoo Earnings Chart) $2.15 - $1.83
+^AFT, AXESSTEL INC (Google Yahoo Earnings Chart) $1.11 - $1.01
+^!ALLI, ALLION HEALTHCARE (Google Yahoo Earnings Chart) $7.31 - $6.66
@ANO, ANOORAQ RESOURCES (Google Yahoo Earnings Chart) $3.49 - $3.07
*+*!@ANTP, PHAZAR CORP (Google Yahoo Earnings Chart) $10.52 - $8.92
+!BRCM, BROADCOM CORP CL (Google Yahoo Earnings Chart) $41.72 - $40.04
+**!CATS, CATALYST SEMICOND (Google Yahoo Earnings Chart) $7.5 - $6.95
+CTCH, COMMTOUCH SOFTWR (Google Yahoo Earnings Chart) $2.07 - $1.97
!DSTI, DAYSTAR TECHNOLOG (Google Yahoo Earnings Chart) $4.88 - $4.18
+!EDU, NEW ORIENTAL EDUC (Google Yahoo Earnings Chart) $75.2 - $70.42
*FTRS.OB, FOOTHILLS RESOURC (Google Yahoo Earnings Chart) $0.97 - $0.85
+*FWRD, FOWARD AIR CORP (Google Yahoo Earnings Chart) $28.77 - $27.51
*+!HLS, HEALTHSOUTH CP (Google Yahoo Earnings Chart) $18.47 - $17.31
+IMMU, IMMUNOMEDICS INC (Google Yahoo Earnings Chart) $2.56 - $2.29
+INMD, INTEGRAMED AMERIC (Google Yahoo Earnings Chart) $13.15 - $11.99
*+**!LMRA, LUMERA CORPORATIO (Google Yahoo Earnings Chart) $4.24 - $4.01
+NSSC, NAPCO SEC SYS INC (Google Yahoo Earnings Chart) $5.96 - $5.7
*+!PTT, VCG HOLDING CORP (Google Yahoo Earnings Chart) $8.1 - $7.61
!SYUT, SYNUTRA INTERNATI (Google Yahoo Earnings Chart) $29.75 - $28
+^TEK, TEKTRONIX INC (Google Yahoo Earnings Chart) $37.85 - $37.55
+^TOVC.OB, TORVEC INC (Google Yahoo Earnings Chart) $3.5 - $3.1
`+UNG, US NAT GAS FD ETF (Google Yahoo Earnings Chart) $41.51 - $40.2
+USEG, US ENERGY CORP (Google Yahoo Earnings Chart) $4.89 - $4.51
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