Yesterday's Investor's Corner column in IBD talked about buying stocks that gap up huge on high volume. They say there is a tendency for investors (especially me) to avoid buying stocks after they gap up big because of the fear of profit taking. However, they assert (and I have somewhat confirmed with some research I did last spring) that most of the really big moves over time (usually 3 -6 months) begin with a large gap up, mostly on earnings.
BWLD did just that today, and thanks to paper trading I don't have to worry about a big sell off here.
