 Good afternoon everyone and welcome. This is Melissa Arma with the stock swish, and I'm here reviewing two Gaps today two bearish gaps today one is FMRM Which was a new gap today and the second one is going to be RH which was a continuation gap from yesterday So I'm going to go over them So interestingly enough this the stock Close to the night before it was 33 58 and it opened the next morning down here at 28 40 That was today. Okay. I'm Friday Going back to the beginning part of the day. The stock was very spreading. In fact, the spread was so wide that I Thought it would thin out into the open a little bit, but it didn't It was a moving spread between You know one cent which which it really didn't hold for that long and like 30 some cents at any one point in the morning And even now let's look at the spread of this is even holding here within this one penny This spread is a difference between the bit and the ask and that's the difference here between seeing there I just widened up again So this is really moving a lot Anyways, here you have the stock opening open on the day Boom dropped immediately and it went right down to the target target was $27 went to 2017 and first eight minutes of the day the stock sold off and got within 18 cents of the target that I wrote in the room in the morning This is this is the reason to be aggressive in good gaps And this really was a good gap today Why because it's sold off right a ways you could have made your money immediately and been done and And then I watched this and I thought this could continue because it had a bigger number It had the market with it today and the market is red right now Even at 2 15 in the afternoon the market is actually red right now And this stock is is I would say neutral it really looks exhausted It had the hard drop here and then it flipped and now it's just going nowhere. It's nowhere's well In fact, this is a good continuation watch for Monday actually, but the second setup in here Really ran down hard hit hard drop 50 cents never broke the low never broke the low. Look at that 20 some 15 2017 18 Look at this area here Literally got within 30 cents of the break base base base tried to go lower Flipped here flipped rally couldn't do it couldn't get down couldn't get the breakdown But this morning it had the quick short So it really does pay to be aggressive in the morning good gaps and this rated good enough to be aggressive on I think everyone has to decide for themselves what kind of spread though. They're comfortable with whether it's One penny spread, maybe that's all your comfort level is or 10 cents Maybe that's your comfort level when I'm talking about it though It has to be priced in with the stop So for example if the stops $29 and the widest spread on something is 30 cents then the stop has to be at 29 30 and That that's the issue with something that has a widespread these mattress companies though the sector usually is spreading I really thought the spread would tighten up into the open It just didn't but when you're putting the stop in you've got to give it the widest spread that it has Even if it moves because you don't want to get taken out of the train and then have it go on to work Just because it hits the stop in the spread and really still holds the number So there's pros and cons to doing things that are spreading sometimes you have spreading stocks it really just get gymungus moves and Sometimes what happens is it cuts in on the risk to reward when you have something because if the price the spread in with the original stop say it's 25 cents and you've got a price 30 cents in that's 55 cents Whereas normally would be 25 cents plus a smaller cushion So these are the things you have to watch for when you're taking the position You got to look at the bit of the ask and I always do that one determining where to put the stop So I don't get taken out and have the trade go off to work But everyone has to pick their own comfort level with what they're okay with taking for the spread and an MFRN I don't know if this is Widing up to 30 cents here in the afternoon, but in the morning. It was at 30 cents at one point This is a good follow through continuation watch for next week. I don't I don't know where this closes today There's only two hours left in a Friday and in June So this probably kind of flat lines here before the end of the day and the first morning move was it on this One drop one break 18 cents for the target and done was the only thing this gave today But it's a watch possibly for tomorrow Now the other one was the RH that did a continuation gap today and is actually having a bigger move today Which smaller stops and it really did yesterday. This is still selling off. Look at this $26 is probably get to today All right, let's look at this Now so this this was a gap today, but I really look at it as a continuation gap So here it is Looks like the volume really came in in this bar Looks like this really open here at 932 dropped broke rally back Fell off a planet even right now the second it looks like it's going to $26 So the high today in this was 28 14. This had a big big move today This was one of the targets I had given for it yesterday. Actually, I said $26 even yesterday It looks like it's going to get there today sometimes these things make a gymungus move in one full day the day the gap and Sometimes they take two three days to get there This has having a smoother cleaner better sell off today than it did the original day of the gap It's got the volume unlike the MFR and this does have a nice tight spread and it's treating really really well It's treating easier and nicer than it did yesterday the first day of the gap And again the markets with this too in the afternoon here for the sell off So this should just bleed lower here into into the clothes today So a good continuation gap from yesterday's top watch our age and then the MFR M Which was the quick play in the morning and that was all that that gave this is Melissa Armour with the stock swoosh if you would like more information on how to learn my golden gap 26-point rating method. I teach a class on it The next class is this weekend June 11th and 12th Email me at melissa at the stocks which calm if you would like more information. Thanks everybody. Have a great day