Gaps

Gaps are points in the price progression that are skipped over. An example of a gap is included in the Apple chart from the beginning of the year. Price often returns to "fill a gap" as it did in the Apple example. On Friday of last week, many stocks and indices gapped lower, so expect many of them to come back up to fill the gap before resuming downward. There is a chart of Abbott Labs attached that shows a nice filling of the gap in the short term. It is done is such a way that there is a high probability Abbott will not go to a new high in the near future. Short term trade (high risk) for ABT - December 55 puts selling for $1.50 should go to $3.20 in a week or two.