 Hi everyone and welcome to the stocks wish play of the day for May 10th 2016 presented by the stocks wish comm Today's play is going to be presented if our coal partner e-signal. These are e-signal charts And the play today was unfit. This is the daily chart of fit if you take a look this stock Actually was a feature that we did in the room unless I actually did this play three days ago Which was really the primary day to do it on the day that it gapped But I also like to hang on to the symbols to the charts of these stocks that gap down and follow them for a couple Three more days because oftentimes the powerful institutional money that is causing these gaps Continues to get followed through for two three four days So I like to follow them until they no longer continue to follow that pattern of bearishness or bullishness Whichever the case may be Remember when a stock gaps is powerful money doing it. It's not traders money like you or I probably have It's big powerful institutional money and remember also that when a stock gaps There are naturally people who want to go along and want to go short But more importantly there are people that have to go along or have to sell the stock in order to take care of existing positions And this is what makes a lot of gaps very powerful because it's not an option for a lot of people and it's not just small traders remember if a Institution or many many funds have stocks that gap down They are actually not even allowed to hold them many times because they are below the threshold that they're allowed to take a loss And so a lot of times these get selling by a matter of absolute mandatory nature So these can be great places to continue to follow. So the daily chart here today I did not find a lot of things that I love there were a few things that moved They weren't on my primary watch list not a lot of stuff that I was watching moved a lot today This is the best mover that I actually had and it was from a stock that gap to a couple days ago This is the one minute chart of FIT and it opened up here in the morning I wasn't really that excited about when it opened because it had gaped up a little bit Then I was watching it and as it was one of the charts that I have several that I watch it all of a sudden put in This big red bar and fell sharply below yesterday's consolidation that a little rally back even opportunity to get short Have a relatively tight stop in there naturally have to always limit your risk in case you are wrong This particular setup is a very very high odd setup the way this this happened It was very unlikely this trade was stopped out over this area up in here The question is of course how much room does it have to drop today and end up being a fairly narrow day So this is not a big play. It was a very safe play With a 3,000 share amount based on the area I had in here to work with us about a $540 risk amount if I was wrong the profit is only 745 There's only one and a half reward to risk trade not normally something to brag about But it was the best that I had today and was very safe trade Also, it had the opportunity to go much lower. Notice this this dropped It just went sideways for the day and when I made this new low I thought this was it a matter of fact My target was just a few cents below here for the first half I want to come back and right here when it didn't follow through a very important understand how to manage some of these trades You want to get all you can out of them, but you don't want to give back to much profit either It should have continued lower right here when it didn't do that I knew it was going to be sideways or higher that actually was the low of the day right there So some good management Got me out of this at the proper spot with not a home run trade But nevertheless a good trade and you know what may have been the best that I had for what I was looking at in this particular day Understanding gaps like this is a great way to trade it also allows you to trade just the morning hours the first 30 60 minutes of the day For those either interested in a system like this We suggest that you take a look at the course that we teach which is called the golden gap course We're teaching at this Saturday and Sunday company at May 14 15th And if you're not able to make that weekend course coming up You can also get more information and an upcoming free event that we have you can take a look at the screen Contact us at the phone number or the email below. Thanks for listening everyone. I hope you found this educational Until next time this is Paul for the stocks wish comm