Q&A by Don Bright
I have a question about stocks with news out pre-opening. Some say to avoid any stocks with news out; others say it depends what the news is. Regarding,
say, earnings guidance announcements, Iíve seen times when a stock opens down two points on negative news ó and thatís the high trade of the day. Then it goes down two more points. Other times a stock opens down two and then shoots right back up. These are dramatically different results, if you buy on the opening, and you obviously donít know in advance which of these scenarios will occur. How does this issue relate to the opening order strategy?