(The post below was scheduled for posting at around 2AM, but there was a glitch and it did not get published until after the market opened when the glitch was noticed).

The stock market indices have essentially been moving horizontally the first two trading days of this shorter trading week, and the stock market "fear" as measured by VXX has actually been rising since the beginning of this trading week, but it did not exceed (but closed near) its value at the start of the morning session of Friday of last week.

The stock market seems to be ripe for a possible gap tomorrow which may resolve this "divergence" between a rising VXX and a rising-to-horizontal stock market (the fear index and the stock market should usually move in opposite directions/trends). The direction of a gap if it takes place is however not known with certainty.

A question that that may come to mind when there is a gap is: would the gap close, and if yes how to fade it?

 Since the major news from the US this week is  the payroll numbers coming up this Friday, should there be a gap there is a chance for it to get filled particularly given the tight range the market has been trading in stock price. Price revisits and fake moves can take place in such environment.

There are traders who trade gaps via  index stock EFTs (in case of an up  gap, fading the gap can be done via shorting a long index EFT stock (or going long an inverse fund)). Others trade individual/basket of stocks. The idea of trading basket of stocks or individual stocks is to short weak stocks in case of a closing up gap, or to go long strong stocks in case of a closing stock market down gap. Stocks trader and investors use a variety of methods to build their lists of  strong stocks and weak stocks.

Below are two stock  lists: a list stocks that were weak during the previous stock market trading session, and  a list of stocks that were strong during the previous trading session.


List1: Stock that declined -5% (or more in absolute value), and traded 750K or more shares in yesterday's stock market trading session. The stock list is organized by decreasing trading volume.


Ticker Company
JASO JA Solar Holdings Co., Ltd.
VECO Veeco Instruments Inc.
WMS WMS Industries Inc.
ZAGG ZAGG Incorporated
WLT Walter Energy, Inc.
GGC Georgia Gulf Corp.
ASIA AsiaInfo-Linkage,Inc.

List 2: Stock that rose +5% or traded 750K or more shares in yesterday's stock market trading session. The stock list is organized by decreasing trading volume.


Ticker Company
SLW Silver Wheaton Corp.
MTG MGIC Investment Corp.
DANG E-Commerce China Dangdang Inc. 
KCI Kinetic Concepts Inc.
RENN Renren Inc. American Depositary
URBN Urban Outfitters Inc.
RDN Radian Group Inc.
CPWR Compuware Corporation
VHC VirnetX Holding Corp
EXK Endeavour Silver Corp.
GSS Golden Star Resources, Ltd.
GPL Great Panther Silver Ltd
SODA SodaStream International Ltd.
REDF Rediff.com India Ltd.
CNW Con-way Inc.
MOBI Sky-mobi Limited
ABFS Arkansas Best Corporation
IMGN Immunogen Inc.
SAVE Spirit Airlines, Inc.
SGMO Sangamo Biosciences Inc.
VRUS Pharmasset, Inc.
MEDH MedQuist Holdings Inc.
TNAV TeleNav, Inc.

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