Trap Doors
                       These are momentum  trades  that  take  advantage  ofemotional openings due to pre 9:30 AM S&P 500 futures trading.  They can  beplayed long or short, but because of how fast they set up, it  is  tough  toget the tick on the short side.  We  are  talking  about  NYSE  stocks  onlybecause we can follow the volume and see bid and ask size  shown  with  muchmore consistency.  This  is  the  best  strategy  to  take  advantage  of  apotentially profitable trade as you get in gear with the NYSE specialists.
                       Trade Criteria                       1.  Best trades are in high RS value S&P 500 stocks.                       2.  Average daily trading range should be  a  minimumof 1 1/2 to 2 points.                       3.  Stock should also be trading  above  its  50  and200 day EMA's.  this is usually the situation with a high RS value stock.
                       Entry Rules (For Buys, sells reversed)                       1.  The stock must open below the previous close  andtrade down at least 1 point from that close.                       2.  After the opening bar, the second bar  must  makelower high and a lower low.                       3.  Enter long if the 3rd bar trades above  the  highof the 2nd bar.  This indicates the market isn't going to follow through  onthe bad news that caused the down opening and a reversal may  be  in  order.This is the earliest you can enter the trade.  Under normal  conditions  youwill enter on the 4th or 5th bar.   The specialist takes out  the  emotionalsellers on the opening and leaves the  trap  door  wide  open  to  take  theadditional selling out at lower prices.  If he/she has to get long it  mightas well be at lower prices.  Take it to where the volume is.                       At some point this stock  will  have  a  good  reflexrally as buyers return, programs kick in and the specialist lets  the  stockup fast as he/she unwinds inventory.  You as the trader must  recognize  themarket and stock dynamics (Week 3) that make you enter the trade.