I normally don’t mind opening gaps as they signal extreme volatility and that’s usually something we want to avoid; however in the current market state it’s beginning to “cost” money in terms of missed opportunities. The only good thing is that we didn’t lose any money in the missed trades. I’d still rather miss a trade than take a stinker, but this is getting annoying.

I’m not sure what I’m going to do about it yet. I’ve considered staggering my entries further away from current prices to allow the market a little elbow room, but the problem here is stop placement becomes either arbitrary or very expensive as we try to cover the added range. The other thing we can do is look at entering the overnight sessions which is when many of the gaps have developed. So far the results have been good, but the problem will be getting you the information early enough so you can use it.

But this isn’t the first obstacle the markets have thrown at us, and it certainly won’t be the last. I’ll come up with a solution, but I’m open to suggestions if you’d like to help me tackle this problem.

On a different note, we're revamping the ezine (again) so look for some interesting changes this year.