From Ticker Sense
Last Tuesday and Thursday, the Spyders (SPY) gapped down 89 and 113 bps respectively. On Tuesday, as we all know, the decline continued throughout the day, with the Spyders going down another 304 bps from open to close. On Thursday, however, Spyders gapped down and reversed to finish up 84 bps from open to close. Just as we looked at yesterday’s up gaps, we looked at the down gaps on these two days to see what stocks held up the best or performed the worst. In both instances, the stocks that gapped down the most held up the best from open to close, while the stocks that gapped down the least went down the most from open to close. Keep this in mind next time the S&P futures are really weak. The best opportunities (for bulls) on these two occasions were found amongst the least favored stocks at the open.